----

| (Mark      One)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| [      X ] Quarterly Report Pursuant to Section 13 or 15(d) of the      Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
| for      the quarterly period ended September 30, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
| [      ]Transition Report Pursuant to Section 13 or 15(d) of the      Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| for      the transition period      from                                                            to                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
| Commission      File Number 000-50266                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |

| New      Mexico                                       |   | 85-0242376                                   |
|-------------------------------------------------------|--------|----------------------------------------------|
| (State      of incorporation)                         |   | (I.R.S.      Employer Identification Number) |
|                                                  |   |                                         |
| 1200      Trinity Drive, Los Alamos, New Mexico 87544 |
| (Address      of principal executive offices)         |
|                                                  |   |                                         |
| (505) 662-5171                                   |
| Telephone      number                                 |

----

| Large      Accelerated Filer  [ ] | Accelerated      Filer  [ X ] |   |
|---------------------------------------------|-----------------------------------------|--------|
| Non-Accelerated      Filer  [ ]   | Smaller      Reporting Company[ ]       |   |

----

TRINITY

| PART I. FINANCIALINFORMATION |
|------------------------------|
|                         |   |
| Item 1.                      | Financial Statements |
|                         |   |
| Item 2.                      | Management’s Discussion and Analysis of Financial Condition      and Results of Operations |
|                         |   |
| Item 3.                      | Quantitative and Qualitative Disclosures About Market      Risk |
|                         |   |
| Item 4.                      | Controls and Procedures |
|                         |   |
| PART II. OTHER INFORMATION   |
|                         |   |
| Item 1.                      | Legal Proceedings |
|                         |   |
| Item 1A.                     | Risk Factors |
|                         |   |
| Item 2.                      | Unregistered Sales of Equity Securities and Use of      Proceeds |
|                         |   |
| Item 3.                      | Defaults Upon Senior Securities |
|                         |   |
| Item 4.                      | Removed and Reserved |
|                         |   |
| Item 5.                      | Other Information |
|                         |   |
| Item 6.                      | Exhibits |
|                         |   |
|                         | SIGNATURES |
|                         |   |
|                         | CERTIFICATIONS |

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Table of Contents

PART I 

|                                                                                                                                                               |   | September      30, 2010 |      |   | December      31, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|--------|------------------------|--------|
|                                                                                                                                                               |   | (Unaudited)             |      |   |                   |   |
| ASSETS                                                                                                                                                             |   |                    |      |   |                   |   |
| Cash      and due from banks                                                                                                                                       |   | $                       | 17,542    |   |                   | $      | 18,761 |   |
| Interest-bearing      deposits with banks                                                                                                                          |   |                    | 149,092   |   |                   |   | 188,114 |   |
| Federal      funds sold and securities purchased under resellagreements                                                                                            |   |                    | 113       |   |                   |   | 620 |   |
| Cash      and cash equivalents                                                                                                                                     |   |                    | 166,747   |   |                   |   | 207,495 |   |
| Investment      securities available for sale                                                                                                                      |   |                    | 151,489   |   |                   |   | 136,756 |   |
| Investment      securities held to maturity, at amortized cost (fair value of $12,010 at      September 30, 2010 and $10,808 at  December 31,      2009) |   |                    | 11,188    |   |                   |   | 11,436 |   |
| Other      investments                                                                                                                                             |   |                    | 9,697     |   |                   |   | 9,568 |   |
| Loans      (net of allowance for loan losses of $28,844 at September 30, 2010 and      $24,504 at December 31, 2009)                                               |   |                    | 1,159,044 |   |                   |   | 1,215,282 |   |
| Loans      held for sale                                                                                                                                           |   |                    | 17,857    |   |                   |   | 9,245 |   |
| Premises      and equipment, net                                                                                                                                   |   |                    | 30,589    |   |                   |   | 31,949 |   |
| Leased      property under capital leases, net                                                                                                                     |   |                    | 2,211     |   |                   |   | 2,211 |   |
| Accrued      interest receivable                                                                                                                                   |   |                    | 6,834     |   |                   |   | 6,840 |   |
| Mortgage      servicing rights, net                                                                                                                                |   |                    | 6,361     |   |                   |   | 7,647 |   |
| Other      intangible assets                                                                                                                                       |   |                    | 483       |   |                   |   | 830 |   |
| Other      real estate owned                                                                                                                                       |   |                    | 19,667    |   |                   |   | 16,750 |   |
| Prepaid      expenses                                                                                                                                              |   |                    | 6,626     |   |                   |   | 8,648 |   |
| Net      deferred tax assets                                                                                                                                       |   |                    | 6,349     |   |                   |   | 4,979 |   |
| Other      assets                                                                                                                                                  |   |                    | 7,243     |   |                   |   | 7,105 |   |
| Total      assets                                                                                                                                                  |   | $                       | 1,602,385 |   |                   | $      | 1,676,741 |   |

----

Table of Contents

|                                                                                                                                                                                             |   | September      30, 2010 |      |   | December      31, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|--------|------------------------|--------|
|                                                                                                                                                                                             |   | (Unaudited)             |      |   |                   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                                                                                        |   |                    |      |   |                   |   |
| Liabilities                                                                                                                                                                                      |   |                    |      |   |                   |   |
| Deposits:                                                                                                                                                                                        |   |                    |      |   |                   |   |
| Noninterest-bearing                                                                                                                                                                              |   | $                       | 104,934   |   |                   | $      | 87,238 |   |
| Interest-bearing                                                                                                                                                                                 |   |                    | 1,292,968 |   |                   |   | 1,381,207 |   |
| Total      deposits                                                                                                                                                                              |   |                    | 1,397,902 |   |                   |   | 1,468,445 |   |
| Short-term      borrowings                                                                                                                                                                       |   |                    | 1,163     |   |                   |   | 20,000 |   |
| Long-term      borrowings                                                                                                                                                                        |   |                    | 32,300    |   |                   |   | 13,493 |   |
| Long-term      capital lease obligations                                                                                                                                                         |   |                    | 2,211     |   |                   |   | 2,211 |   |
| Junior      subordinated debt owed to unconsolidated trusts                                                                                                                                      |   |                    | 37,116    |   |                   |   | 37,116 |   |
| Accrued      interest payable                                                                                                                                                                    |   |                    | 5,237     |   |                   |   | 5,038 |   |
| Other      liabilities                                                                                                                                                                           |   |                    | 4,947     |   |                   |   | 7,536 |   |
| Total      liabilities                                                                                                                                                                           |   |                    | 1,480,876 |   |                   |   | 1,553,839 |   |
|                                                                                                                                                                                             |   |                    |      |   |                   |   |   |   |
| Stock      owned by Employee Stock Ownership Plan (ESOP) participants; 628,914 shares      and 627,030 shares at September 30, 2010 and December 31, 2009,      respectively, at fair value      |   | $                       | 6,289     |   |                   | $      | 12,541 |   |
| Commitments      and contingencies (Note 13)                                                                                                                                                     |   |                    |      |   |                   |   |   |   |
| Stockholders'      equity                                                                                                                                                                        |   |                    |      |   |                   |   |   |   |
| Preferred      stock, no par, authorized 1,000,000 shares                                                                                                                                        |   |                    |      |   |                   |   |   |   |
| Series      A, 5% cumulative perpetual, 35,539 shares issued and outstanding at      September 30, 2010 and December 31, 2009, $1,000.00 liquidation value, at      amortized cost               |   |                    | 33,755    |   |                   |   | 33,597 |   |
| Series      B, 9% cumulative perpetual, 1,777 shares issued and outstanding at      September 30, 2010 and December 31, 2009, $1,000.00 liquidation value, at      amortized cost                |   |                    | 2,053     |   |                   |   | 2,077 |   |
| Common      stock, no par, authorized 20,000,000 shares; issued 6,856,800 shares,      shares outstanding 6,449,726 and 6,440,784 at September 30, 2010 and      December 31, 2009, respectively |   |                    | 6,836     |   |                   |   | 6,836 |   |
| Additional      paid-in capital                                                                                                                                                                  |   |                    | 1,863     |   |                   |   | 1,869 |   |
| Retained      earnings                                                                                                                                                                           |   |                    | 81,007    |   |                   |   | 77,054 |   |
| Accumulated      other comprehensive income                                                                                                                                                      |   |                    | 680       |   |                   |   | 142 |   |
| Total      stockholders' equity before treasury stock                                                                                                                                            |   |                    | 126,194   |   |                   |   | 121,575 |   |
| Treasury      stock, at cost, 407,074 shares and 416,016 shares at September 30, 2010      and December 31, 2009, respectively                                                                   |   |                    | (10,974   | )      |                   |   | (11,214 | ) |
| Total      stockholders' equity                                                                                                                                                                  |   |                    | 115,220   |   |                   |   | 110,361 |   |
| Total      liabilities and stockholders' equity                                                                                                                                                  |   | $                       | 1,602,385 |   |                   | $      | 1,676,741 |   |

----

Table of Contents

|                                                        |   | Three      Months Ended September 30, |   |   | Nine      Months Ended September 30, |   |
|-------------------------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                                                        |   | 2010                                  |   |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
| Interest      income:                                       |   |                                  |   |   |                                 |   |   |   |   |   |   |   |
| Loans,      including fees                                  |   | $                                     | 17,963 |   |                                 | $      | 17,758 |   |   | $ | 51,873 |   |   | $ | 55,748 |   |
| Investment      securities:                                 |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                     |   |                                  | 747    |   |                                 |   | 960 |   |   |   | 2,156 |   |   |   | 2,104 |   |
| Nontaxable                                                  |   |                                  | 285    |   |                                 |   | 280 |   |   |   | 882 |   |   |   | 760 |   |
| Federal      funds sold                                     |   |                                  | -      |   |                                 |   | - |   |   |   | - |   |   |   | 1 |   |
| Other      interest-bearing deposits                        |   |                                  | 74     |   |                                 |   | 107 |   |   |   | 254 |   |   |   | 193 |   |
| Investment      in unconsolidated trusts                    |   |                                  | 21     |   |                                 |   | 26 |   |   |   | 62 |   |   |   | 68 |   |
| Total      interest income                                  |   |                                  | 19,090 |   |                                 |   | 19,131 |   |   |   | 55,227 |   |   |   | 58,874 |   |
| Interest      expense:                                      |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                    |   |                                  | 3,281  |   |                                 |   | 4,953 |   |   |   | 10,849 |   |   |   | 14,886 |   |
| Short-term      borrowings                                  |   |                                  | 18     |   |                                 |   | 250 |   |   |   | 251 |   |   |   | 502 |   |
| Long-term      borrowings                                   |   |                                  | 253    |   |                                 |   | 120 |   |   |   | 634 |   |   |   | 644 |   |
| Long-term      capital lease obligations                    |   |                                  | 67     |   |                                 |   | 67 |   |   |   | 201 |   |   |   | 201 |   |
| Junior      subordinated debt owed to unconsolidated trusts |   |                                  | 694    |   |                                 |   | 689 |   |   |   | 2,061 |   |   |   | 2,095 |   |
| Total      interest expense                                 |   |                                  | 4,313  |   |                                 |   | 6,079 |   |   |   | 13,996 |   |   |   | 18,328 |   |
| Net      interest income                                    |   |                                  | 14,777 |   |                                 |   | 13,052 |   |   |   | 41,231 |   |   |   | 40,546 |   |
| Provision      for loan losses                              |   |                                  | 500    |   |                                 |   | 4,000 |   |   |   | 15,858 |   |   |   | 20,793 |   |
| Net      interest income after provision for loan losses    |   |                                  | 14,277 |   |                                 |   | 9,052 |   |   |   | 25,373 |   |   |   | 19,753 |   |
| Other      income:                                          |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage      loan servicing fees                           |   |                                  | 659    |   |                                 |   | 643 |   |   |   | 1,959 |   |   |   | 1,865 |   |
| Trust      fees                                             |   |                                  | 442    |   |                                 |   | 383 |   |   |   | 1,253 |   |   |   | 1,088 |   |
| Loan      and other fees                                    |   |                                  | 759    |   |                                 |   | 704 |   |   |   | 2,229 |   |   |   | 2,023 |   |
| Service      charges on deposits                            |   |                                  | 372    |   |                                 |   | 424 |   |   |   | 1,213 |   |   |   | 1,284 |   |
| Gain      on sale of loans                                  |   |                                  | 1,590  |   |                                 |   | 1,553 |   |   |   | 3,068 |   |   |   | 7,048 |   |
| Gain      on sale of securities                             |   |                                  | -      |   |                                 |   | 208 |   |   |   | 47 |   |   |   | 942 |   |
| Title      insurance premiums                               |   |                                  | 308    |   |                                 |   | 256 |   |   |   | 770 |   |   |   | 1,121 |   |
| Other      operating income                                 |   |                                  | 198    |   |                                 |   | 68 |   |   |   | 309 |   |   |   | 323 |   |
| Total      other income                                     |   |                                  | 4,328  |   |                                 |   | 4,239 |   |   |   | 10,848 |   |   |   | 15,694 |   |

----

Table of Contents

|                                                                |   | Three      Months Ended September 30, |   |   | Nine      Months Ended September 30, |   |
|---------------------------------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                                                                |   | 2010                                  |   |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
| Other      expenses:                                                |   |                                  |   |   |                                 |   |   |   |   |   |   |   |
| Salaries      and employee benefits                                 |   | $                                     | 5,152  |   |                                 | $      | 4,967 |   |   | $ | 15,321 |   |   | $ | 14,669 |   |
| Occupancy                                                           |   |                                  | 1,089  |   |                                 |   | 811 |   |   |   | 3,094 |   |   |   | 2,424 |   |
| Data      processing                                                |   |                                  | 686    |   |                                 |   | 718 |   |   |   | 2,119 |   |   |   | 2,042 |   |
| Marketing                                                           |   |                                  | 306    |   |                                 |   | 310 |   |   |   | 1,037 |   |   |   | 1,198 |   |
| Amortization      and valuation of mortgage servicing rights        |   |                                  | 1,304  |   |                                 |   | 909 |   |   |   | 2,587 |   |   |   | 1,796 |   |
| Amortization      and valuation of other intangible assets          |   |                                  | 110    |   |                                 |   | 67 |   |   |   | 332 |   |   |   | 200 |   |
| Supplies                                                            |   |                                  | 102    |   |                                 |   | 93 |   |   |   | 311 |   |   |   | 445 |   |
| Loss      on sale of other real estate owned                        |   |                                  | 1,938  |   |                                 |   | 86 |   |   |   | 3,423 |   |   |   | 617 |   |
| Postage                                                             |   |                                  | 164    |   |                                 |   | 142 |   |   |   | 486 |   |   |   | 426 |   |
| Bankcard      and ATM network fees                                  |   |                                  | 361    |   |                                 |   | 371 |   |   |   | 859 |   |   |   | 1,025 |   |
| Legal,      professional and accounting fees                        |   |                                  | 896    |   |                                 |   | 724 |   |   |   | 2,222 |   |   |   | 1,705 |   |
| FDIC      insurance premiums                                        |   |                                  | 638    |   |                                 |   | 477 |   |   |   | 2,470 |   |   |   | 1,661 |   |
| Collection      expenses                                            |   |                                  | 446    |   |                                 |   | 85 |   |   |   | 1,274 |   |   |   | 376 |   |
| Other                                                               |   |                                  | 16     |   |                                 |   | 1,093 |   |   |   | 1,335 |   |   |   | 2,405 |   |
| Total      other expense                                            |   |                                  | 13,208 |   |                                 |   | 10,853 |   |   |   | 36,870 |   |   |   | 30,989 |   |
| Income      (loss) before provision for (benefit from) income taxes |   |                                  | 5,397  |   |                                 |   | 2,438 |   |   |   | (649 | ) |   |   | 4,458 |   |
| Provision      for (benefit from) Income taxes                      |   |                                  | 1,947  |   |                                 |   | 1,116 |   |   |   | 59 |   |   |   | 1,709 |   |
| Net      income (loss)                                              |   | $                                     | 3,450  |   |                                 | $      | 1,322 |   |   | $ | (708 | ) |   | $ | 2,749 |   |
| Dividends      and discount accretion on preferred shares           |   |                                  | 532    |   |                                 |   | 529 |   |   |   | 1,589 |   |   |   | 1,081 |   |
| Net      income (loss) available to common shareholders             |   | $                                     | 2,918  |   |                                 | $      | 793 |   |   | $ | (2,297 | ) |   | $ | 1,668 |   |
| Basic      earnings (loss) per common share                         |   | $                                     | 0.45   |   |                                 | $      | 0.12 |   |   | $ | (0.36 | ) |   | $ | 0.26 |   |
| Diluted      earnings (loss) per common share                       |   | $                                     | 0.45   |   |                                 | $      | 0.12 |   |   | $ | (0.36 | ) |   | $ | 0.26 |   |

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Table of Contents

|                                                                                               |   | Nine      Months Ended September 30, |     |
|----------------------------------------------------------------------------------------------------|--------|--------------------------------------|----------|
|                                                                                               |   | 2010                                 |     |   | 2009 |   |
| Cash      Flows From Operating Activities                                                          |   |                                 |     |   |
| Net      (loss) income                                                                             |   | $                                    | (708     | ) |   | $ | 2,749 |   |
| Adjustments      to reconcile net income (loss) to net cash provided by operating      activities: |   |
| Depreciation      and amortization                                                                 |   |                                 | 2,283    |   |   |   | 1,880 |   |
| Net      amortization of:                                                                          |   |                                 |     |   |   |   |   |   |
| Mortgage      servicing rights                                                                     |   |                                 | 1,280    |   |   |   | 1,928 |   |
| Other      intangible assets                                                                       |   |                                 | 347      |   |   |   | 200 |   |
| Premium      and discounts on investment securities, net                                           |   |                                 | 641      |   |   |   | (56 | ) |
| Junior      subordinated debt owed to unconsolidated trusts issuance    costs                      |   |                                 | 10       |   |   |   | 10 |   |
| Provision      for loan losses                                                                     |   |                                 | 15,858   |   |   |   | 20,793 |   |
| Change      in mortgage servicing rights valuation allowance, net                                  |   |                                 | 1,307    |   |   |   | (132 | ) |
| Loss      on disposal of premises and equipment                                                    |   |                                 | 9        |   |   |   | 3 |   |
| Gain      on sale of investment securities                                                         |   |                                 | (47      | ) |   |   | (942 | ) |
| Federal      Home Loan Bank (FHLB) stock dividends received                                        |   |                                 | (7       | ) |   |   | (5 | ) |
| Loss      on venture capital investments                                                           |   |                                 | 99       |   |   |   | 286 |   |
| Gain      on sale of loans                                                                         |   |                                 | (3,068   | ) |   |   | (7,048 | ) |
| Loss      on disposal of other real estate owned                                                   |   |                                 | 1,762    |   |   |   | 347 |   |
| Write-down      of value of other real estate owned                                                |   |                                 | 1,692    |   |   |   | 283 |   |
| Decrease      (increase) in other assets                                                           |   |                                 | 238      |   |   |   | (3,125 | ) |
| (Decrease)      increase in other liabilities                                                      |   |                                 | (1,139   | ) |   |   | 564 |   |
| Stock      options and stock appreciation rights expenses                                          |   |                                 | 109      |   |   |   | 110 |   |
| Tax      benefit recognized for exercise of stock options                                          |   |                                 | -        |   |   |   | (10 | ) |
| Net      cash provided by operating activities before originations and gross sales      of loans   |   |                                 | 20,666   |   |   |   | 17,835 |   |
| Gross      sales of loans held for sale                                                            |   |                                 | 128,261  |   |   |   | 347,487 |   |
| Origination      of loans held for sale                                                            |   |                                 | (135,106 | ) |   |   | (343,449 | ) |
| Net      cash provided by operating activities                                                     |   |                                 | 13,821   |   |   |   | 21,873 |   |

----

Table of Contents

|                                                                                         |   | Nine      Months Ended September 30, |     |
|----------------------------------------------------------------------------------------------|--------|--------------------------------------|----------|
|                                                                                         |   | 2010                                 |     |   | 2009 |   |
| Cash      Flows From Investing Activities                                                    |   |                                 |     |   |
| Proceeds      from maturities and paydowns of investment securities, available for      sale |   | $                                    | 101,830  |   |   | $ | 8,842 |   |
| Proceeds      from maturities and paydowns of investment securities, held to      maturity   |   |                                 | 248      |   |   |   | 180 |   |
| Proceeds      from maturities and paydowns of investment securities,    other                |   |                                 | 171      |   |   |   | 378 |   |
| Proceeds      from sale of investment securities, available for sale                         |   |                                 | 3,422    |   |   |   | 45,004 |   |
| Purchase      of investment securities available for sale                                    |   |                                 | (119,769 | ) |   |   | (54,389 | ) |
| Purchase      of investment securities other                                                 |   |                                 | (392     | ) |   |   | (2,617 | ) |
| Proceeds      from sale of other real estate owned                                           |   |                                 | 13,497   |   |   |   | 4,715 |   |
| Loans      funded, net of repayments                                                         |   |                                 | 20,512   |   |   |   | (20,997 | ) |
| Purchases      of loans                                                                      |   |                                 | -        |   |   |   | (1,101 | ) |
| Purchases      of premises and equipment                                                     |   |                                 | (932     | ) |   |   | (9,207 | ) |
| Net      cash provided by (used in) investing activities                                     |   |                                 | 18,587   |   |   |   | (29,192 | ) |
| Cash      Flows From Financing Activities                                                    |   |                                 |     |   |   |
| Net      (decrease) increase in demand deposits, NOW accounts and savings      accounts      |   |                                 | (22,801  | ) |   |   | 16,048 |   |
| Net      (decrease) increase in time deposits                                                |   |                                 | (47,742  | ) |   |   | 108,306 |   |
| Proceeds      from issuances of borrowings                                                   |   |                                 | 20,000   |   |   |   | 30,000 |   |
| Repayment      of borrowings                                                                 |   |                                 | (20,030  | ) |   |   | (20,029 | ) |
| Purchase      of treasury stock                                                              |   |                                 | (8       | ) |   |   | (473 | ) |
| Issuance      of common stock for stock option plan                                          |   |                                 | 134      |   |   |   | 290 |   |
| Issuance      of preferred stock                                                             |   |                                 | -        |   |   |   | 35,539 |   |
| Common      shares dividend payments                                                         |   |                                 | (1,739   | ) |   |   | (5,157 | ) |
| Preferred      shares dividend payments                                                      |   |                                 | (970     | ) |   |   | (743 | ) |
| Tax      benefit recognized for exercise of stock options                                    |   |                                 | -        |   |   |   | 10 |   |
| Net      cash (used in) provided by financing activities                           |   |                                 | (73,156  | ) |   |   | 163,791 |   |
| Net      (decrease) increase in cash and cash equivalents                               |   |                                 | (40,748  | ) |   |   | 156,472 |   |
| Cash      and cash equivalents:                                                              |   |                                 |     |   |   |   |   |   |
| Beginning      of period                                                                     |   |                                 | 207,495  |   |   |   | 25,262 |   |
| End      of period                                                                           |   | $                                    | 166,747  |   |   | $ | 181,734 |   |
|                                                                                         |   |                                 |     |   |   |   |   |   |
| Supplemental      Disclosures of Cash Flow Information                                       |   |
| Cash      payments for:                                                                      |   |                                 |     |   |   |   |   |   |
| Interest                                                                                     |   | $                                    | 13,797   |   |   | $ | 18,750 |   |
| Income      taxes                                                                            |   |                                 | 510      |   |   |   | 5,150 |   |
| Non-cash      investing and financing activities:                                            |   |
| Transfers      from loans to other real estate owned                                         |   |                                 | 19,868   |   |   |   | 12,019 |   |
| Dividends      declared, not yet paid                                                        |   |                                 | 730      |   |   |   | 247 |   |
| Change      in unrealized gain on investment securities, net of taxes                        |   |                                 | 538      |   |   |   | (10 | ) |

----

Table of Contents

----

Table of Contents

|                                                         |   | Three      Months Ended September 30, |   |   | Nine      Months Ended September 30, |   |
|--------------------------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                                                         |   | 2010                                  |   |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
|                                                         |   | (Unaudited;      in thousands)        |   |
| Net      income (loss)                                       |   | $                                     | 3,450  |   |                                 | $      | 1,322 |   |   | $ | (708 | ) |   | $ | 2,749 |   |
| Securities      available for sale:                          |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net      change in unrealized gains                          |   |                                  | 494    |   |                                 |   | 2,131 |   |   |   | 810 |   |   |   | 930 |   |
| Related      income tax expense                              |   |                                  | (173   | )      |                                 |   | (856 | ) |   |   | (221 | ) |   |   | (359 | ) |
| Net      securities gains reclassified into earnings         |   |                                  | -      |   |                                 |   | (208 | ) |   |   | (47 | ) |   |   | (942 | ) |
| Related      income tax benefit                              |   |                                  | -      |   |                                 |   | 95 |   |   |   | (4 | ) |   |   | 361 |   |
| Net      effect on other comprehensive income for the period |   |                                  | 321    |   |                                 |   | 1,162 |   |   |   | 538 |   |   |   | (10 | ) |
| Comprehensive      income (loss)                             |   | $                                     | 3,771  |   |                                 | $      | 2,484 |   |   | $ | (170 | ) |   | $ | 2,739 |   |

|                                                                           |   | Three      Months Ended September 30,                           |      |   | Nine      Months Ended September 30, |   |
|--------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|-----------|--------|--------------------------------------|--------|
|                                                                           |   | 2010                                                            |      |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
|                                                                           |   | (Unaudited;      in thousands, except share and per share data) |      |
| Net      income (loss)                                                         |   | $                                                               | 3,450     |   |                                 | $      | 1,322 |   |   | $ | (708 | ) |   | $ | 2,749 |   |
| Dividends      and discount accretion on preferred shares                      |   |                                                            | 532       |   |                                 |   | 529 |   |   |   | 1,589 |   |   |   | 1,081 |   |
| Net      income (loss) available to common shareholders                        |   | $                                                               | 2,918     |   |                                 | $      | 793 |   |   | $ | (2,297 | ) |   | $ | 1,668 |   |
| Weighted      average common shares issued                                     |   |                                                            | 6,856,800 |   |                                 |   | 6,856,800 |   |   |   | 6,856,800 |   |   |   | 6,856,800 |   |
| LESS:      Weighted average treasury stock shares                              |   |                                                            | (407,013  | )      |                                 |   | (416,017 | ) |   |   | (412,667 | ) |   |   | (411,358 | ) |
| Weighted      average common shares outstanding, net                           |   |                                                            | 6,449,787 |   |                                 |   | 6,440,783 |   |   |   | 6,444,133 |   |   |   | 6,445,442 |   |
| Basic      earnings (loss) per common share                                    |   | $                                                               | 0.45      |   |                                 | $      | 0.12 |   |   | $ | (0.36 | ) |   | $ | 0.26 |   |
| Weighted      average dilutive shares from stock option plan                   |   |                                                            | -         |   |                                 |   | 10,455 |   |   |   | - |   |   |   | 8,776 |   |
| Weighted      average common shares outstanding including derivative    shares |   |                                                            | 6,449,787 |   |                                 |   | 6,451,238 |   |   |   | 6,444,133 |   |   |   | 6,454,218 |   |
| Diluted      earnings (loss) per common share                                  |   | $                                                               | 0.45      |   |                                 | $      | 0.12 |   |   | $ | (0.36 | ) |   | $ | 0.26 |   |

----

Table of Contents

| AVAILABLE      FOR SALE                     |   | Amortized      Cost |    |   | Gross      Unrealized Gains |   |   | Gross      Unrealized Losses |   |   | Fair      Value |   |
|---------------------------------------------|--------|---------------------|---------|--------|-----------------------------|--------|--------|------------------------------|--------|--------|-----------------|--------|
|                                        |   | (In      thousands) |    |
| September      30, 2010                     |   |                |    |   |                        |   |   |                         |   |   |            |   |
| U.S.      Government sponsored agencies     |   | $                   | 52,706  |   |                        | $      | 282    |                         |   | $      | -               |   |   | $ | 52,988 |   |
| States      and political subdivisions      |   |                | 20,279  |   |                        |   | 806    |                         |   |   | -               |   |   |   | 21,085 |   |
| Residential      mortgage-backed securities |   |                | 77,458  |   |                        |   | 991    |                         |   |   | (1,033          | )      |   |   | 77,416 |   |
| Totals                                      |   | $                   | 150,443 |   |                        | $      | 2,079  |                         |   | $      | (1,033          | )      |   | $ | 151,489 |   |
|                                        |   |                |    |   |                        |   |   |                         |   |   |            |   |   |   |   |   |
| December      31, 2009                      |   |                |    |   |                        |   |   |                         |   |   |            |   |   |   |   |   |
| U.S.      Government sponsored agencies     |   | $                   | 68,502  |   |                        | $      | 23     |                         |   | $      | (143            | )      |   | $ | 68,382 |   |
| States      and political subdivisions      |   |                | 26,112  |   |                        |   | 494    |                         |   |   | (87             | )      |   |   | 26,519 |   |
| Residential      mortgage-backed securities |   |                | 41,906  |   |                        |   | 563    |                         |   |   | (614            | )      |   |   | 41,855 |   |
| Totals                                      |   | $                   | 136,520 |   |                        | $      | 1,080  |                         |   | $      | (844            | )      |   | $ | 136,756 |   |

----

Table of Contents

| HELD      TO MATURITY                  |   | Amortized      Cost |   |   | Gross      Unrealized Gains |   |   | Gross      Unrealized Losses |   |   | Fair      Value |   |
|----------------------------------------|--------|---------------------|--------|--------|-----------------------------|--------|--------|------------------------------|--------|--------|-----------------|--------|
|                                   |   | (In      thousands) |   |
| September      30, 2010                |   |                |   |   |                        |   |   |                         |   |   |            |   |
| States      and political subdivisions |   | $                   | 11,188 |   |                        | $      | 1,063  |                         |   | $      | (241            | )      |   | $ | 12,010 |   |
| Totals                                 |   | $                   | 11,188 |   |                        | $      | 1,063  |                         |   | $      | (241            | )      |   | $ | 12,010 |   |
|                                   |   |                |   |   |                        |   |   |                         |   |   |            |   |   |   |   |   |
| December      31, 2009                 |   |                |   |   |                        |   |   |                         |   |   |            |   |   |   |   |   |
| States      and political subdivisions |   | $                   | 11,436 |   |                        | $      | -      |                         |   | $      | (628            | )      |   | $ | 10,808 |   |
| Totals                                 |   | $                   | 11,436 |   |                        | $      | -      |                         |   | $      | (628            | )      |   | $ | 10,808 |   |

| OTHER      INVESTMENTS                                               |   | Amortized      Cost |   |   | Gross      Unrealized Gains |   |   | Gross      Unrealized Losses |   |   | Fair      Value |   |
|----------------------------------------------------------------------|--------|---------------------|--------|--------|-----------------------------|--------|--------|------------------------------|--------|--------|-----------------|--------|
|                                                                 |   | (In      thousands) |   |
| September      30, 2010                                              |   |                |   |   |                        |   |   |                         |   |   |            |   |
| Non-marketable      equity securities (including FRB and FHLB stock) |   | $                   | 8,581  |   |                        | $      | -      |                         |   | $      | -               |   |   | $ | 8,581 |   |
| Investment      in unconsolidated trusts                             |   |                | 1,116  |   |                        |   | -      |                         |   |   | -               |   |   |   | 1,116 |   |
| Totals                                                               |   | $                   | 9,697  |   |                        | $      | -      |                         |   | $      | -               |   |   | $ | 9,697 |   |
|                                                                 |   |                |   |   |                        |   |   |                         |   |   |            |   |   |   |   |   |
| December      31, 2009                                               |   |                |   |   |                        |   |   |                         |   |   |            |   |   |   |   |   |
| Non-marketable      equity securities (including FRB and FHLB stock) |   | $                   | 8,452  |   |                        | $      | -      |                         |   | $      | -               |   |   | $ | 8,452 |   |
| Investment      in unconsolidated trusts                             |   |                | 1,116  |   |                        |   | -      |                         |   |   | -               |   |   |   | 1,116 |   |
| Totals                                                               |   | $                   | 9,568  |   |                        | $      | -      |                         |   | $      | -               |   |   | $ | 9,568 |   |

|                       |   | Three      Months Ended September 30, |   |   | Nine      Months Ended September 30, |   |
|----------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                       |   | 2010                                  |   |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
|                       |   | (In      thousands)                   |   |
| Gross      realized gains  |   | $                                     | -      |   |                                 | $      | 208 |   |   | $ | 47 |   |   | $ | 942 |   |
| Gross      realized losses |   |                                  | -      |   |                                 |   | - |   |   |   | - |   |   |   | - |   |
| Net      gains             |   | $                                     | -      |   |                                 | $      | 208 |   |   | $ | 47 |   |   | $ | 942 |   |

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Table of Contents

|                                        |   | Less      than 12 Months |   |   | 12      Months or Longer |   |   | Total           |   |
|---------------------------------------------|--------|--------------------------|--------|--------|--------------------------|--------|--------|-----------------|--------|
| AVAILABLE      FOR SALE                     |   | Fair      Value          |   |   | Unrealized      Losses   |   |   | Fair      Value |   |   | Unrealized      Losses |   |   | Fair      Value |   |   | Unrealized      Losses |   |
|                                        |   | (In      thousands)      |   |
| September      30, 2010                     |   |                     |   |   |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |
| Residential      mortgage-backed securities |   | $                        | 40,238 |   |                     | $      | (1,033 | )               |   | $ | - |   |   | $ | - |   |   | $ | 40,238 |   |   | $ | (1,033 | ) |
| Totals                                      |   | $                        | 40,238 |   |                     | $      | (1,033 | )               |   | $ | - |   |   | $ | - |   |   | $ | 40,238 |   |   | $ | (1,033 | ) |
|                                        |   |                     |   |   |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2009                      |   |                     |   |   |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.      Government sponsored agencies     |   | $                        | 25,855 |   |                     | $      | (143   | )               |   | $ | - |   |   | $ | - |   |   | $ | 25,855 |   |   | $ | (143 | ) |
| States      and political subdivisions      |   |                     | 4,540  |   |                     |   | (87    | )               |   |   | - |   |   |   | - |   |   |   | 4,540 |   |   |   | (87 | ) |
| Residential      mortgage-backed securities |   |                     | 20,579 |   |                     |   | (527   | )               |   |   | 1,481 |   |   |   | (87 | ) |   |   | 22,060 |   |   |   | (614 | ) |
| Totals                                      |   | $                        | 50,974 |   |                     | $      | (757   | )               |   | $ | 1,481 |   |   | $ | (87 | ) |   | $ | 52,455 |   |   | $ | (844 | ) |

|                                   |   | Less      than 12 Months |   |   | 12      Months or Longer |   |   | Total           |   |
|----------------------------------------|--------|--------------------------|--------|--------|--------------------------|--------|--------|-----------------|--------|
| HELD      TO MATURITY                  |   | Fair      Value          |   |   | Unrealized      Losses   |   |   | Fair      Value |   |   | Unrealized      Losses |   |   | Fair      Value |   |   | Unrealized      Losses |   |
|                                   |   | (In      thousands)      |   |
| September      30, 2010                |   |                     |   |   |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |
| States      and political subdivisions |   | $                        | -      |   |                     | $      | -      |            |   | $ | 1,133 |   |   | $ | (241 | ) |   | $ | 1,133 |   |   | $ | (241 | ) |
| Totals                                 |   | $                        | -      |   |                     | $      | -      |            |   | $ | 1,133 |   |   | $ | (241 | ) |   | $ | 1,133 |   |   | $ | (241 | ) |
|                                   |   |                     |   |   |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2009                 |   |                     |   |   |                     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| States      and political subdivisions |   | $                        | 9,937  |   |                     | $      | (297   | )               |   | $ | 1,499 |   |   | $ | (331 | ) |   | $ | 11,436 |   |   | $ | (628 | ) |
| Totals                                 |   | $                        | 9,937  |   |                     | $      | (297   | )               |   | $ | 1,499 |   |   | $ | (331 | ) |   | $ | 11,436 |   |   | $ | (628 | ) |

|                                            |   | Available      for Sale |    |   | Held      to Maturity |   |    | Other      Investments |   |
|-------------------------------------------------|--------|-------------------------|---------|--------|-----------------------|--------|---------|------------------------|--------|
|                                            |   | Amortized      Cost     |    |   | Fair      Value       |   |    | Amortized      Cost    |   |   | Fair      Value |   |   | Amortized      Cost |   |   | Fair      Value |   |
|                                            |   | (In      thousands)     |    |
| One      year or less                           |   | $                       | 14,497  |   |                  | $      | 14,597  |                   |   | $ | - |   |   | $ | - |   |   | $ | 100 |   |   | $ | 100 |   |
| One      to five years                          |   |                    | 52,351  |   |                  |   | 52,854  |                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Five      to ten years                          |   |                    | 34,008  |   |                  |   | 34,401  |                   |   |   | 1,376 |   |   |   | 1,133 |   |   |   | - |   |   |   | - |   |
| Over      ten years                             |   |                    | 49,587  |   |                  |   | 49,637  |                   |   |   | 9,812 |   |   |   | 10,877 |   |   |   | 1,116 |   |   |   | 1,116 |   |
| Equity      investments with no stated maturity |   |                    | -       |   |                  |   | -       |                   |   |   | - |   |   |   | - |   |   |   | 8,481 |   |   |   | 8,481 |   |
|                                            |   | $                       | 150,443 |   |                  | $      | 151,489 |                   |   | $ | 11,188 |   |   | $ | 12,010 |   |   | $ | 9,697 |   |   | $ | 9,697 |   |

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Table of Contents

|                           |   | September      30,  |      |   | December      31, |   |
|--------------------------------|--------|---------------------|-----------|--------|-------------------|--------|
|                           |   | 2010                |      |   | 2009              |   |
|                           |   | (In      thousands) |      |
| Commercial                     |   | $                   | 142,240   |   |              | $      | 137,684 |   |
| Commercial      real estate    |   |                | 415,355   |   |              |   | 452,235 |   |
| Residential      real estate   |   |                | 409,886   |   |              |   | 399,588 |   |
| Construction      real estate  |   |                | 170,730   |   |              |   | 194,179 |   |
| Installment      and other     |   |                | 51,843    |   |              |   | 58,456 |   |
| Total      loans               |   |                | 1,190,054 |   |              |   | 1,242,142 |   |
| Unearned      income           |   |                | (2,166    | )      |              |   | (2,356 | ) |
| Gross      loans               |   |                | 1,187,888 |   |              |   | 1,239,786 |   |
| Allowance      for loan losses |   |                | (28,844   | )      |              |   | (24,504 | ) |
| Net      loans                 |   | $                   | 1,159,044 |   |              | $      | 1,215,282 |   |

|                            |   | AtSeptember      30, 2010 |   | At      December 31, 2009 |   |
|---------------------------------|--------|---------------------------|--------|---------------------------|--------|
|                            |   | (In      thousands)       |   |
| Non-accruing      loans         |   | $                         | 52,797 |                      |   | $ | 65,035 |   |
| Total      non-performing loans |   |                      | 52,797 |                      |   |   | 65,035 |   |

|                                                               |   | September      30,  |   |   | December      31, |   |
|--------------------------------------------------------------------|--------|---------------------|--------|--------|-------------------|--------|
|                                                               |   | 2010                |   |   | 2009              |   |
|                                                               |   | (In      thousands) |   |
| Loans      for which there was a related allowance for loan losses |   | $                   | 5,194  |   |              | $      | - |   |
| Other      impaired loans                                          |   |                | 53,449 |   |              |   | 67,736 |   |
| Total      impaired loans                                          |   | $                   | 58,643 |   |              | $      | 67,736 |   |
|                                                               |   |                |   |   |              |   |   |   |
| Average      monthly balance of impaired loans                     |   | $                   | 63,241 |   |              | $      | 51,884 |   |
| Related      allowance for loan losses                             |   |                | 515    |   |              |   | - |   |

----

Table of Contents

|                                |   | Three      Months Ended September 30, |   |   | Nine      Months Ended September 30, |   |
|-------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                                |   | 2010                                  |   |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
|                                |   | (Dollars      in thousands)           |   |
| Balance      at beginning of period |   | $                                     | 29,658 |   |                                 | $      | 24,864 |   |   | $ | 24,504 |   |   | $ | 15,230 |   |
| Provision      for loan losses      |   |                                  | 500    |   |                                 |   | 4,000 |   |   |   | 15,858 |   |   |   | 20,793 |   |
| Total      charge-offs              |   |                                  | (4,504 | )      |                                 |   | (4,167 | ) |   |   | (14,969 | ) |   |   | (11,477 | ) |
| Total      recoveries               |   |                                  | 3,190  |   |                                 |   | 181 |   |   |   | 3,451 |   |   |   | 332 |   |
| Net      charge-offs                |   |                                  | (1,314 | )      |                                 |   | (3,986 | ) |   |   | (11,518 | ) |   |   | (11,145 | ) |
| Balance      at end of period       |   | $                                     | 28,844 |   |                                 | $      | 24,878 |   |   | $ | 28,844 |   |   | $ | 24,878 |   |

|                         |   | At      September 30, 2010 |   |   | At      December 31, 2009 |   |
|------------------------------|--------|----------------------------|--------|--------|---------------------------|--------|
|                         |   | (In      thousands)        |   |
| Construction      property   |   | $                          | 12,880 |   |                      | $      | 12,782 |   |
| Residential      real estate |   |                       | 3,291  |   |                      |   | 3,337 |   |
| Commercial      real estate  |   |                       | 3,496  |   |                      |   | 631 |   |
| Total                        |   | $                          | 19,667 |   |                      | $      | 16,750 |   |

----

Table of Contents

|                                   |   | Shares |    |   | Weighted-Average      Exercise Price |   |   | Weighted-Average      Remaining Contractual Term, in years |   |   | Aggregate      Intrinsic Value (in thousands) |   |
|----------------------------------------|--------|--------|---------|--------|--------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|
| Outstanding      at January 1, 2010    |   |   | 412,500 |   |                                 | $      | 27.03  |                                                       |   |   |                                          |   |   |   |
| Granted                                |   |   | -       |   |                                 |   | -      |                                                       |   |   |                                          |   |   |   |
| Exercised                              |   |   | -       |   |                                 |   | -      |                                                       |   |   |                                          |   |   |   |
| Forfeited      or expired              |   |   | -       |   |                                 |   | -      |                                                       |   |   |                                          |   |   |   |
| Outstanding      at September 30, 2010 |   |   | 412,500 |   |                                 | $      | 27.03  |                                                       |   |   | 2.07                                          |   |   | $ | 1,729 |   |
| Exercisable      at September 30, 2010 |   |   | 229,000 |   |                                 | $      | 26.77  |                                                       |   |   | 2.84                                          |   |   | $ | 995 |   |

| Maturity      Date          |   | Rate   |   | Principal      due |             | Amount |   |
|-----------------------------|--------|--------|--------|--------------------|------------------|--------|--------|
| (Dollars      in thousands) |   |
| 01/26/2012                  |   |   | 2.57   | %                  | At      maturity |   | $      | 10,000 |   |
| 03/23/2015                  |   |   | 3.05   |               | At      maturity |   |   | 20,000 |   |
| 04/27/2021                  |   |   | 6.34   |               | At      maturity |   |   | 2,300 |   |
|                        |   |   |   |               |             |   | $      | 32,300 |   |

----

Table of Contents

|                                                            |   | Trust      I                |   |   | Trust      III         |                  |   | Trust      IV          |   |   | Trust      V            |   |
|-----------------------------------------------------------------|--------|-----------------------------|--------|--------|------------------------|-----------------------|--------|------------------------|--------|--------|-------------------------|--------|
|                                                            |   | (Dollars      in thousands) |   |
| Date      of Issue                                              |   | March      23, 2000         |   |   | May      11, 2004      |                  |   | June      29, 2005     |   |   | September      21, 2006 |   |
| Amount      of trust preferred securities issued                |   | $                           | 10,000 |   |                   | $                     | 6,000  |                   |   | $      | 10,000                  |   |   | $ | 10,000 |   |
| Rate      on trust preferred securities                         |   |                        | 10.875 | %      |                   | 3.24%      (variable) |   |                   |   | 6.88   | %                       |   |   | 6.83 | % |
| Maturity                                                        |   | March      8, 2030          |   |   | September      8, 2034 |                  |   | November      23, 2035 |   |   | December      15, 2036  |   |
| Date      of first redemption                                   |   | March      8, 2010          |   |   | September      8, 2009 |                  |   | August      23, 2010   |   |   | September      15, 2011 |   |
| Common      equity securities issued                            |   | $                           | 310    |   |                   | $                     | 186    |                   |   | $      | 310                     |   |   | $ | 310 |   |
| Junior      subordinated deferrable interest debentures owed    |   | $                           | 10,310 |   |                   | $                     | 6,186  |                   |   | $      | 10,310                  |   |   | $ | 10,310 |   |
| Rate      on junior subordinated deferrable interest debentures |   |                        | 10.875 | %      |                   | 3.24%      (variable) |   |                   |   | 6.88   | %                       |   |   | 6.83 | % |

----

Table of Contents

| ·   | August      23, 2010, $177,332.00 for Trinity Capital Trust  IV |
|--------------------|-----------------------------------------------------------------|

| ·   | September      8, 2010, $560,606.25 for Trinity Capital TrustI |
|--------------------|----------------------------------------------------------------|

| ·   | September      8, 2010, $51,192.42 for Trinity Capital Trust  III |
|--------------------|-------------------------------------------------------------------|

| ·   | September      15, 2010, $176,043.25 for Trinity Capital Trust  V |
|--------------------|-------------------------------------------------------------------|

| ·   | November      23, 2010, $172,000.00 for Trinity Capital Trust  IV |
|--------------------|-------------------------------------------------------------------|

| ·   | December      8, 2010, $44,953.20 for Trinity Capital Trust  III |
|--------------------|------------------------------------------------------------------|

| ·   | December      15, 2010, $170,750.00 for Trinity Capital Trust  V |
|--------------------|------------------------------------------------------------------|

| ·   | February      23, 2011, $172,000.00 for Trinity Capital Trust  IV |
|--------------------|-------------------------------------------------------------------|

| ·   | March      8, 2011, $543,750.00 for Trinity Capital TrustI |
|--------------------|------------------------------------------------------------|

| ·   | March      8, 2011, $44,953.20 for Trinity Capital Trust  III |
|--------------------|---------------------------------------------------------------|

|                                            |   | Contract      Amount    |    |
|-------------------------------------------------|--------|-------------------------|---------|
|                                            |   | September      30, 2010 |    |   | December      31, 2009 |   |
|                                            |   | (In      thousands)     |    |
| Unfunded      commitments under lines of credit |   | $                       | 169,371 |   |   | $ | 155,535 |   |
| Commercial      and standby letters of credit   |   |                    | 16,391  |   |   |   | 14,628 |   |

----

Table of Contents

|                                                | Number      of shares issued |   | Dividend      rate                            |   | Liquidation      value per share |   |   | Original      cost, in thousands |   |
|-----------------------------------------------------|------------------------------|--------|-----------------------------------------------|--------|----------------------------------|--------|--------|----------------------------------|--------|
| Series      A cumulative perpetual preferred shares | 35,539                       |   | 5 %      for the first 5 years, thereafter 9% |   | $                                | 1,000  |   |                             | $      | 33,437 |   |
| Series      B cumulative perpetual preferred shares | 1,777                        |   | 9%                                            |   |                             | 1,000  |   |                             |   | 2,102 |   |

----

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| · | Level      1: Quoted prices (unadjusted) for identical assets or liabilities in      active markets that the entity has the ability to access as of the      measurement date. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Level      2: Significant other observable inputs other than Level 1 prices such as      quoted prices for similar assets or liabilities; quoted prices in markets      that are not active; or other inputs that are observable or can be      corroborated by observable marketdata. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Level      3: Significant unobservable inputs that reflect a reporting entity’s own      assumptions about the assumptions that market participants would use in      pricing an asset or liability. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| September      30, 2010                                                                              |   | Total               |   |   | Quoted      Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant      Other Observable Inputs (Level 2) |   |   | Significant      Unobservable Inputs(Level      3) |   |
|------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|----------------------------------------------------|--------|
|                                                                                                 |   | (In      thousands) |   |
| Financial      Assets:                                                                               |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |
| Investment      securities available for sale:                                                       |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |
| U.S.      Government sponsored agencies                                                              |   | $                   | 52,988 |   |                                                                | $      | -      |                                               |   | $      | 52,988                                             |   |   | $ | - |   |
| States      and political subdivisions                                                               |   |                | 21,085 |   |                                                                |   | -      |                                               |   |   | 21,085                                             |   |   |   | - |   |
| Residential      mortgage-backed securities                                                          |   |                | 77,416 |   |                                                                |   | -      |                                               |   |   | 77,416                                             |   |   |   | - |   |
| Interest      rate lock commitments, mandatory forward delivery commitments and pair      offs       |   |                | 703    |   |                                                                |   | -      |                                               |   |   | 703                                                |   |   |   | - |   |
|                                                                                                 |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
| Financial      Liabilities:                                                                          |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
|  Interest      rate lock commitments, mandatory forward delivery commitments and pair      offs |   | $                   | 31     |   |                                                                | $      | -      |                                               |   | $      | 31                                                 |   |   | $ | - |   |
|                                                                                                 |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
| Off-balance-sheet      instruments:                                                                  |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
| Loan      commitments and standby letters of credit                                                  |   | $                   | 23     |   |                                                                | $      | -      |                                               |   | $      | 23                                                 |   |   | $ | - |   |
|                                                                                                 |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
| December      31, 2009                                                                               |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
|                                                                                                 |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
| Financial      Assets:                                                                               |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
| Investment      securities available for sale:                                                       |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
| U.S.      Government sponsored agencies                                                              |   | $                   | 68,382 |   |                                                                | $      | -      |                                               |   | $      | 68,382                                             |   |   | $ | - |   |
| States      and political subdivisions                                                               |   |                | 26,519 |   |                                                                |   | -      |                                               |   |   | 26,519                                             |   |   |   | - |   |
| Residential      mortgage-backed securities                                                          |   |                | 41,855 |   |                                                                |   | -      |                                               |   |   | 41,855                                             |   |   |   | - |   |
| Interest      rate lock commitments, mandatory forward delivery commitments and pair      offs       |   |                | 251    |   |                                                                |   | -      |                                               |   |   | 251                                                |   |   |   | - |   |
|                                                                                                 |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
| Financial      Liabilities:                                                                          |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
|  Interest      rate lock commitments, mandatory forward delivery commitments and pair      offs |   | $                   | 1      |   |                                                                | $      | -      |                                               |   | $      | 1                                                  |   |   | $ | - |   |
|                                                                                                 |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
| Off-balance-sheet      instruments:                                                                  |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
| Loan      commitments and standby letters of credit                                                  |   | $                   | 24     |   |                                                                | $      | -      |                                               |   | $      | 24                                                 |   |   | $ | - |   |

----

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| September      30, 2010        |   | Total               |   |   | Quoted      Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant      Other Observable Inputs (Level 2) |   |   | Significant      Unobservable Inputs(Level      3) |   |
|--------------------------------|--------|---------------------|--------|--------|---------------------------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|----------------------------------------------------|--------|
|                           |   | (In      thousands) |   |
| Financial      Assets:         |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |
| Impaired      loans            |   | $                   | 7,056  |   |                                                                | $      | -      |                                               |   | $      | -                                                  |   |   | $ | 7,056 |   |
| Loans      held for sale       |   |                | -      |   |                                                                |   | -      |                                               |   |   | -                                                  |   |   |   | - |   |
| Mortgage      servicing rights |   |                | 6,305  |   |                                                                |   | -      |                                               |   |   | -                                                  |   |   |   | 6,305 |   |
| Non-Financial      Assets:     |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
| Foreclosed      assets         |   |                | 10,959 |   |                                                                |   | -      |                                               |   |   | -                                                  |   |   |   | 10,959 |   |
|                           |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
| December      31, 2009         |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
|                           |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
| Financial      Assets:         |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
| Impaired      loans            |   | $                   | 14,954 |   |                                                                | $      | -      |                                               |   | $      | -                                                  |   |   | $ | 14,954 |   |
| Loans      held for sale       |   |                | 3,522  |   |                                                                |   | -      |                                               |   |   | 3,522                                              |   |   |   | - |   |
| Mortgage      servicing rights |   |                | 3,049  |   |                                                                |   | -      |                                               |   |   | -                                                  |   |   |   | 3,049 |   |
| Non-Financial      Assets:     |   |                |   |   |                                                                |   |   |                                               |   |   |                                               |   |   |   |   |   |
| Foreclosed      assets         |   |                | 16,750 |   |                                                                |   | -      |                                               |   |   | -                                                  |   |   |   | 16,750 |   |

----

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|                                                                    |   | September      30, 2010 |      |   | December      31, 2009 |   |
|-------------------------------------------------------------------------|--------|-------------------------|-----------|--------|------------------------|--------|
|                                                                    |   | Carrying      amount    |      |   | Fair      value        |   |   | Carrying      amount |   |   | Fair      value |   |
|                                                                    |   | (In      thousands)     |      |
| Financial      assets:                                                  |   |                    |      |   |                   |   |   |   |   |   |   |   |
| Cash      and due from banks                                            |   | $                       | 17,542    |   |                   | $      | 17,542 |   |   | $ | 18,761 |   |   | $ | 18,761 |   |
| Interest-bearing      deposits with banks                               |   |                    | 149,092   |   |                   |   | 149,092 |   |   |   | 188,114 |   |   |   | 188,114 |   |
| Federal      funds sold and securities purchased under resellagreements |   |                    | 113       |   |                   |   | 113 |   |   |   | 620 |   |   |   | 620 |   |
| Investments:                                                            |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Available      for sale                                                 |   |                    | 151,489   |   |                   |   | 151,489 |   |   |   | 136,756 |   |   |   | 136,756 |   |
| Held      to maturity                                                   |   |                    | 11,188    |   |                   |   | 12,010 |   |   |   | 11,436 |   |   |   | 10,808 |   |
| Other      investments                                                  |   |                    | 9,697     |   |                   |   | 9,697 |   |   |   | 9,568 |   |   |   | 9,568 |   |
| Loans,      net                                                         |   |                    | 1,159,044 |   |                   |   | 1,173,657 |   |   |   | 1,215,282 |   |   |   | 1,203,138 |   |
| Loans      held for sale                                                |   |                    | 17,857    |   |                   |   | 18,256 |   |   |   | 9,245 |   |   |   | 9,268 |   |
| Accrued      interest receivable                                        |   |                    | 6,834     |   |                   |   | 6,834 |   |   |   | 6,840 |   |   |   | 6,840 |   |
| Mortgage      servicing rights                                          |   |                    | 6,361     |   |                   |   | 6,464 |   |   |   | 7,647 |   |   |   | 8,754 |   |
| Derivative      financial instruments                                   |   |                    | 703       |   |                   |   | 703 |   |   |   | 251 |   |   |   | 251 |   |
|                                                                    |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Financial      liabilities:                                             |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest      bearing deposits                                      |   | $                       | 104,934   |   |                   | $      | 104,934 |   |   | $ | 87,238 |   |   | $ | 87,238 |   |
| Interest      bearing deposits                                          |   |                    | 1,292,968 |   |                   |   | 1,298,554 |   |   |   | 1,381,207 |   |   |   | 1,385,968 |   |
| Short-term      borrowings                                              |   |                    | 1,163     |   |                   |   | 1,182 |   |   |   | 20,000 |   |   |   | 20,182 |   |
| Long-term      borrowings                                               |   |                    | 32,300    |   |                   |   | 35,489 |   |   |   | 13,493 |   |   |   | 14,620 |   |
| Junior      subordinated debt owed to unconsolidated trusts             |   |                    | 37,116    |   |                   |   | 18,451 |   |   |   | 37,116 |   |   |   | 18,118 |   |
| Accrued      interest payable                                           |   |                    | 5,237     |   |                   |   | 5,237 |   |   |   | 5,038 |   |   |   | 5,038 |   |
| Derivative      financial instruments                                   |   |                    | 31        |   |                   |   | 31 |   |   |   | 1 |   |   |   | 1 |   |
|                                                                    |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Off-balance      sheet instruments:                                     |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Standby      letters of credit                                          |   | $                       | 23        |   |                   | $      | 23 |   |   | $ | 24 |   |   | $ | 24 |   |

| ·   | November      23, 2010, $172,000.00 for Trinity Capital Trust  IV |
|--------------------|-------------------------------------------------------------------|

| ·   | December      8, 2010, $44,953.20 for Trinity Capital Trust  III |
|--------------------|------------------------------------------------------------------|

| ·   | December      15, 2010, $170,750.00 for Trinity Capital Trust  V |
|--------------------|------------------------------------------------------------------|

| ·   | February      23, 2011, $172,000.00 for Trinity Capital Trust  IV |
|--------------------|-------------------------------------------------------------------|

| ·   | March      8, 2011, $543,750.00 for Trinity Capital TrustI |
|--------------------|------------------------------------------------------------|

| ·   | March      8, 2011, $44,953.20 for Trinity Capital Trust  III |
|--------------------|---------------------------------------------------------------|

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Item

| ·   | Create      a Financial Services Oversight Council to identify emerging systemic risks      and improve interagencycooperation; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | Centralize      responsibility for consumer financial protection by creating a new agency,      the Consumer Financial Protection Bureau, responsible for implementing,      examining and enforcing compliance with federal consumer financial      laws; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Establish      strengthened capital standards for banks and bank holding companies, and      disallow trust preferred securities from being included in a bank’s Tier 1      capital determination (subject to a grandfather provision for existing      trust preferred securities for bank of Trinity's  size); |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Contain      a series of provisions covering mortgage loan origination standards      affecting, among other things, originator compensation, minimum repayment      standards and pre-payments; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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| ·   | Require      financial holding companies, such as the Company, to be well-capitalized      and well-managed as of July 21, 2011. Bank holding companies and      banks must also be both well-capitalized and well-managed in order to      acquire banks located outside their homestate; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Grant      the Federal Reserve the power to regulate debit card interchange      fees; |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | Implement      corporate governance revisions, including with regard to executive      compensation and proxy access by shareholders, that apply to all public      companies, not just financialinstitutions; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Make      permanent the $250 thousand limit for federal deposit insurance and      increase the cash limit of Securities Investor Protection Corporation      protection from $100 thousand to $250 thousand and provide      unlimited federal deposit insurance until January 1, 2013 for      non-interest bearing demand transaction accounts at all insured depository      institutions; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Repeal      the federal prohibitions on the payment of interest on demand deposits,      thereby permitting depository institutions to pay interest on business      transaction and other accounts; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increase      the authority of the Federal Reserve to examine the Company and its      nonbank subsidiaries. |
|--------------------|--------------------------------------------------------------------------------------------------------------|

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|                                             |   | Three      Months Ended September 30, |   |   | Nine      Months Ended September 30, |   |
|--------------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                                             |   | 2010                                  |   |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
|                                             |   | (In      thousands)                   |   |
| Balance      at beginning of period              |   | $                                     | 8,281  |   |                                 | $      | 8,305 |   |   | $ | 8,525 |   |   | $ | 6,908 |   |
| Servicing      rights originated and capitalized |   |                                  | 621    |   |                                 |   | 877 |   |   |   | 1,301 |   |   |   | 3,563 |   |
| Amortization                                     |   |                                  | (356   | )      |                                 |   | (639 | ) |   |   | (1,280 | ) |   |   | (1,928 | ) |
|                                             |   | $                                     | 8,546  |   |                                 | $      | 8,543 |   |   | $ | 8,546 |   |   | $ | 8,543 |   |

|                                             |   | Three      Months Ended September 30, |   |   | Nine      Months Ended September 30, |   |
|--------------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                                             |   | 2010                                  |   |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
|                                             |   | (In      thousands)                   |   |
| Balance      at beginning of period              |   | $                                     | (1,237 | )      |                                 | $      | (1,235 | ) |   | $ | (878 | ) |   | $ | (1,637 | ) |
| Aggregate      reductions credited to operations |   |                                  | -      |   |                                 |   | - |   |   |   | 332 |   |   |   | 1,250 |   |
| Aggregate      additions charged to operations   |   |                                  | (948   | )      |                                 |   | (270 | ) |   |   | (1,639 | ) |   |   | (1,118 | ) |
|                                             |   | $                                     | (2,185 | )      |                                 | $      | (1,505 | ) |   | $ | (2,185 | ) |   | $ | (1,505 | ) |

----

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|                                            |   | September      30, 2010 |   |   | December      31, 2009 |   |
|-------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
| Prepayment      Standard Assumption (PSA) speed |   |                    | 341.67 | %      |                   |   | 232.00 | % |
| Discount      rate                              |   |                    | 10.75  |   |                   |   | 10.76 |   |
| Earnings      rate                              |   |                    | 1.52   |   |                   |   | 2.75 |   |

----

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----

Table of Contents

|                                                                                  |   | Three      Months Ended September 30, |      |
|---------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|
|                                                                                  |   | 2010                                  |      |   | 2009 |   |
|                                                                                  |   | Average      Balance                  |      |   | Interest |   |   | Yield/Rate |   |   | Average      Balance |   |   | Interest |   |   | Yield/Rate |   |
|                                                                                  |   | (Dollars      in thousands)           |      |
| Interest-earning      Assets:                                                         |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans(1)                                                                              |   | $                                     | 1,192,390 |   |   | $ | 17,963 |   |   |   | 5.98 | % |   | $ | 1,249,540 |   |   | $ | 17,758 |   |   |   | 5.64 | % |
| Taxable      investment securities                                                    |   |                                  | 152,808   |   |   |   | 747 |   |   |   | 1.94 |   |   |   | 84,581 |   |   |   | 960 |   |   |   | 4.50 |   |
| Investment      securities exempt from federal income taxes (2)                       |   |                                  | 33,429    |   |   |   | 463 |   |   |   | 5.49 |   |   |   | 36,010 |   |   |   | 446 |   |   |   | 4.91 |   |
| Federal      funds sold                                                               |   |                                  | 167       |   |   |   | - |   |   |   | - |   |   |   | 473 |   |   |   | - |   |   |   | - |   |
| Other      interest-bearing deposits                                                  |   |                                  | 116,035   |   |   |   | 74 |   |   |   | 0.25 |   |   |   | 151,758 |   |   |   | 107 |   |   |   | 0.28 |   |
| Investment      in unconsolidated trust subsidiaries                                  |   |                                  | 1,116     |   |   |   | 21 |   |   |   | 7.47 |   |   |   | 1,116 |   |   |   | 26 |   |   |   | 9.24 |   |
| Total      interest-earning assets                                                    |   |                                  | 1,495,945 |   |   |   | 19,268 |   |   |   | 5.11 |   |   |   | 1,523,478 |   |   |   | 19,297 |   |   |   | 5.03 |   |
| Non-interest-earning      assets                                                      |   |                                  | 87,968    |   |   |   |   |   |   |   |   |   |   |   | 64,730 |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                     |   | $                                     | 1,583,913 |   |   |   |   |   |   |   |   |   |   | $ | 1,588,208 |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      Liabilities:                                                    |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                             |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW      deposits                                                                     |   | $                                     | 120,871   |   |   | $ | 60 |   |   |   | 0.20 | % |   | $ | 110,161 |   |   | $ | 102 |   |   |   | 0.37 | % |
| Money      market deposits                                                            |   |                                  | 205,822   |   |   |   | 110 |   |   |   | 0.21 |   |   |   | 187,555 |   |   |   | 185 |   |   |   | 0.39 |   |
| Savings      deposits                                                                 |   |                                  | 352,050   |   |   |   | 251 |   |   |   | 0.28 |   |   |   | 349,147 |   |   |   | 370 |   |   |   | 0.42 |   |
| Time      deposits over $100,000                                                      |   |                                  | 394,767   |   |   |   | 1,850 |   |   |   | 1.86 |   |   |   | 423,492 |   |   |   | 2,922 |   |   |   | 2.74 |   |
| Time      deposits under $100,000                                                     |   |                                  | 216,511   |   |   |   | 1,010 |   |   |   | 1.85 |   |   |   | 213,648 |   |   |   | 1,374 |   |   |   | 2.55 |   |
| Short-term      borrowings, including ESOP borrowings under 1 year                    |   |                                  | 1,166     |   |   |   | 18 |   |   |   | 6.12 |   |   |   | 26,315 |   |   |   | 250 |   |   |   | 3.77 |   |
| Long-term      borrowings, including ESOP borrowings over 1 year                      |   |                                  | 32,300    |   |   |   | 253 |   |   |   | 3.11 |   |   |   | 13,507 |   |   |   | 120 |   |   |   | 3.52 |   |
| Long-term      capital lease obligations                                              |   |                                  | 2,211     |   |   |   | 67 |   |   |   | 12.02 |   |   |   | 2,211 |   |   |   | 67 |   |   |   | 12.02 |   |
| Junior      subordinated debt owed to unconsolidated trusts                           |   |                                  | 37,116    |   |   |   | 694 |   |   |   | 7.42 |   |   |   | 37,116 |   |   |   | 689 |   |   |   | 7.36 |   |
| Total      interest-bearing liabilities                                               |   |                                  | 1,362,814 |   |   |   | 4,313 |   |   |   | 1.26 |   |   |   | 1,363,152 |   |   |   | 6,079 |   |   |   | 1.77 |   |
| Demand      deposits--non-interest-bearing                                            |   |                                  | 49,447    |   |   |   |   |   |   |   |   |   |   |   | 40,200 |   |   |   |   |   |   |   |   |   |
| Other      non-interest-bearing liabilities                                           |   |                                  | 50,835    |   |   |   |   |   |   |   |   |   |   |   | 59,477 |   |   |   |   |   |   |   |   |   |
| Stockholders'      equity, including stock owned by ESOP                              |   |                                  | 120,817   |   |   |   |   |   |   |   |   |   |   |   | 125,379 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders equity                                        |   | $                                     | 1,583,913 |   |   |   |   |   |   |   |   |   |   | $ | 1,588,208 |   |   |   |   |   |   |   |   |   |
| Net      interest income on a fully tax-equivalent basis/interest rate      spread(3) |   | $                                     | 14,955    |   |   |   | 3.85 | % |   |   |   |   |   | $ | 13,218 |   |   |   | 3.26 | % |
| Net      interest margin on a fully tax-equivalent basis(4)                           |   |                                  |      | 3.97 | % |   |   |   |   |   |   |   |   |   |   | 3.44 | % |
| Net      interest margin(4)                                                           |   |                                  |      |   |   |   |   | 3.92 | % |   |   |   |   |   |   |   |   |   |   | 3.40 | % |

| (1) | Average      loans include non-accrual loans of $53.2 million and $64.8 million for      September 30, 2010 and 2009, respectively. Interest income includes loan      origination fees of $504 thousand and $528 thousand for the three months      ended September 30, 2010 and 2009,respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Non-taxable      investment income is presented on a fully tax-equivalent basis, adjusting      for federal and state exemption of interest income and certain other      permanent tax differences. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (3) | Interest      rate spread represents the difference between the average yield on      interest-earning assets and the average cost of interest-bearing      liabilities and is presented on a fully tax-equivalent    basis. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Net      interest margin represents net interest income as a percentage of average      interest-earning assets. |
|-----|------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                                                                  |   | Nine      Months Ended September 30, |      |
|---------------------------------------------------------------------------------------|--------|--------------------------------------|-----------|
|                                                                                  |   | 2010                                 |      |   | 2009 |   |
|                                                                                  |   | Average      Balance                 |      |   | Interest |   |   | Yield/Rate |   |   | Average      Balance |   |   | Interest |   |   | Yield/Rate |   |
|                                                                                  |   | (Dollars      in thousands)          |      |
| Interest-earning      Assets:                                                         |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans(1)                                                                              |   | $                                    | 1,212,815 |   |   | $ | 51,873 |   |   |   | 5.72 | % |   | $ | 1,251,785 |   |   | $ | 55,748 |   |   |   | 5.95 | % |
| Taxable      investment securities                                                    |   |                                 | 136,238   |   |   |   | 2,156 |   |   |   | 2.12 |   |   |   | 74,860 |   |   |   | 2,104 |   |   |   | 3.76 |   |
| Investment      securities exempt from federal income taxes (2)                       |   |                                 | 36,124    |   |   |   | 1,428 |   |   |   | 5.29 |   |   |   | 29,609 |   |   |   | 1,214 |   |   |   | 5.48 |   |
| Federal      funds sold                                                               |   |                                 | 266       |   |   |   | - |   |   |   | - |   |   |   | 1,018 |   |   |   | 1 |   |   |   | 0.13 |   |
| Other      interest-bearing deposits                                                  |   |                                 | 124,507   |   |   |   | 254 |   |   |   | 0.27 |   |   |   | 109,563 |   |   |   | 193 |   |   |   | 0.24 |   |
| Investment      in unconsolidated trust subsidiaries                                  |   |                                 | 1,116     |   |   |   | 62 |   |   |   | 7.43 |   |   |   | 1,116 |   |   |   | 68 |   |   |   | 8.15 |   |
| Total      interest-earning assets                                                    |   |                                 | 1,511,066 |   |   |   | 55,773 |   |   |   | 4.93 |   |   |   | 1,467,951 |   |   |   | 59,328 |   |   |   | 5.40 |   |
| Non-interest-earning      assets                                                      |   |                                 | 87,239    |   |   |   |   |   |   |   |   |   |   |   | 60,966 |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                     |   | $                                    | 1,598,305 |   |   |   |   |   |   |   |   |   |   | $ | 1,528,917 |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      Liabilities:                                                    |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                             |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW      deposits                                                                     |   | $                                    | 114,394   |   |   | $ | 198 |   |   |   | 0.23 |   |   | $ | 108,650 |   |   | $ | 339 |   |   |   | 0.42 | % |
| Money      market deposits                                                            |   |                                 | 207,891   |   |   |   | 373 |   |   |   | 0.24 |   |   |   | 191,498 |   |   |   | 635 |   |   |   | 0.44 |   |
| Savings      deposits                                                                 |   |                                 | 358,118   |   |   |   | 759 |   |   |   | 0.28 |   |   |   | 329,700 |   |   |   | 1,031 |   |   |   | 0.42 |   |
| Time      deposits over $100,000                                                      |   |                                 | 401,514   |   |   |   | 6,322 |   |   |   | 2.11 |   |   |   | 386,755 |   |   |   | 8,550 |   |   |   | 2.96 |   |
| Time      deposits under $100,000                                                     |   |                                 | 215,885   |   |   |   | 3,197 |   |   |   | 1.98 |   |   |   | 210,584 |   |   |   | 4,331 |   |   |   | 2.75 |   |
| Short-term      borrowings, including ESOP borrowings under 1 year                    |   |                                 | 7,041     |   |   |   | 251 |   |   |   | 4.77 |   |   |   | 28,717 |   |   |   | 502 |   |   |   | 2.34 |   |
| Long-term      borrowings, including ESOP borrowings over 1 year                      |   |                                 | 26,448    |   |   |   | 634 |   |   |   | 3.20 |   |   |   | 18,461 |   |   |   | 644 |   |   |   | 4.66 |   |
| Long-term      capital lease obligations                                              |   |                                 | 2,211     |   |   |   | 201 |   |   |   | 12.15 |   |   |   | 2,211 |   |   |   | 201 |   |   |   | 12.15 |   |
| Junior      subordinated debt owed to unconsolidated trusts                           |   |                                 | 37,116    |   |   |   | 2,061 |   |   |   | 7.42 |   |   |   | 37,116 |   |   |   | 2,095 |   |   |   | 7.55 |   |
| Total      interest-bearing liabilities                                               |   |                                 | 1,370,618 |   |   |   | 13,996 |   |   |   | 1.37 |   |   |   | 1,313,692 |   |   |   | 18,328 |   |   |   | 1.87 |   |
|                                                                                  |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand      deposits--non-interest-bearing                                            |   | $                                    | 47,173    |   |   |   |   |   |   |   |   |   |   | $ | 43,421 |   |   |   |   |   |   |   |   |   |
| Other      non-interest-bearing liabilities                                           |   |                                 | 58,556    |   |   |   |   |   |   |   |   |   |   |   | 51,739 |   |   |   |   |   |   |   |   |   |
| Stockholders'      equity, including stock owned by ESOP                              |   |                                 | 121,958   |   |   |   |   |   |   |   |   |   |   |   | 120,065 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders equity                                        |   | $                                    | 1,598,305 |   |   |   |   |   |   |   |   |   |   | $ | 1,528,917 |   |   |   |   |   |   |   |   |   |
| Net      interest income on a fully tax-equivalent basis/interest rate      spread(3) |   | $                                    | 41,777    |   |   |   | 3.57 | % |   |   |   |   |   | $ | 41,000 |   |   |   | 3.54 | % |
| Net      interest margin on a fully tax-equivalent basis(4)                           |   |                                 |      | 3.70 | % |   |   |   |   |   |   |   |   |   |   | 3.73 | % |
| Net      interest margin(4)                                                           |   |                                 |      |   |   |   |   | 3.65 | % |   |   |   |   |   |   |   |   |   |   | 3.69 | % |

| (1)       | Average      loans include non-accrual loans of $61.7 million and $48.1 million for      September 30, 2010 and 2009, respectively. Interest income includes loan      origination fees of $1.0 million and $2.4 million for the nine months      ended September 30, 2010 and 2009, respectively. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  (2) |  Non-taxable      investment income is presented on a fully tax-equivalent basis, adjusting      for federal and state exemption of interest income and certain other      permanent tax differences.                                                                                         |

| (3) | Interest      rate spread represents the difference between the average yield on      interest-earning assets and the average cost of interest-bearing      liabilities and is presented on a fully tax-equivalent    basis. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (4) | Net      interest margin represents net interest income as a percentage of average      interest-earning assets. |
|-----|------------------------------------------------------------------------------------------------------------------|

|                                                  |   | Three      Months Ended September 30, |   |   | Nine      Months Ended September 30, |   |
|-------------------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                                                  |   | 2010                                  |   |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
|                                                  |   | (In      thousands)                   |   |
| Net      interest income                              |   | $                                     | 14,777 |   |                                 | $      | 13,052 |   |   | $ | 41,231 |   |   | $ | 40,546 |   |
| Tax-equivalent      adjustment to net interest income |   |                                  | 178    |   |                                 |   | 166 |   |   |   | 546 |   |   |   | 454 |   |
| Net      interest income, fully tax-equivalent basis  |   | $                                     | 14,955 |   |                                 | $      | 13,218 |   |   | $ | 41,777 |   |   | $ | 41,000 |   |

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|                                                                     |   | Three      Months Ended September 30, |   |   | Nine      Months Ended September 30, |   |
|--------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                                                                     |   | 2010      Compared to 2009            |   |   | 2010      Compared to 2009           |   |
|                                                                     |   | Change      Due to Volume             |   |   | Change      Due to Rate              |   |   | Total      Change |   |   | Change      Due to Volume |   |   | Change      Due to Rate |   |   | Total      Change |   |
|                                                                     |   | (In      thousands)                   |   |
| Interest-earning      Assets:                                            |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|  Loans                                                              |   | $                                     | (833   | )      |                                 | $      | 1,038 |   |   | $ | 205 |   |   | $ | (1,706 | ) |   | $ | (2,169 | ) |   | $ | (3,875 | ) |
|  Taxable      investment securities                                 |   |                                  | 516    |   |                                 |   | (729 | ) |   |   | (213 | ) |   |   | 1,233 |   |   |   | (1,181 | ) |   |   | 52 |   |
|  Investment      securities exempt from federal income taxes(1)     |   |                                  | (34    | )      |                                 |   | 51 |   |   |   | 17 |   |   |   | 259 |   |   |   | (45 | ) |   |   | 214 |   |
|  Federal      funds sold                                            |   |                                  | -      |   |                                 |   | - |   |   |   | - |   |   |   | - |   |   |   | (1 | ) |   |   | (1 | ) |
|  Other      interest bearing deposits                               |   |                                  | (24    | )      |                                 |   | (9 | ) |   |   | (33 | ) |   |   | 28 |   |   |   | 33 |   |   |   | 61 |   |
|  Investment      in unconsolidated trust subsidiaries               |   |                                  | -      |   |                                 |   | (5 | ) |   |   | (5 | ) |   |   | - |   |   |   | (6 | ) |   |   | (6 | ) |
|  Total      (decrease) increase in interest income                  |   | $                                     | (375   | )      |                                 | $      | 346 |   |   | $ | (29 | ) |   | $ | (186 | ) |   | $ | (3,369 | ) |   | $ | (3,555 | ) |
| Interest-bearing      Liabilities:                                       |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|  Now      deposits                                                  |   | $                                     | 9      |   |                                 | $      | (51 | ) |   | $ | (42 | ) |   | $ | 17 |   |   | $ | (158 | ) |   | $ | (141 | ) |
|  Money      market deposits                                         |   |                                  | 17     |   |                                 |   | (92 | ) |   |   | (75 | ) |   |   | 50 |   |   |   | (312 | ) |   |   | (262 | ) |
|  Savings      deposits                                              |   |                                  | 3      |   |                                 |   | (122 | ) |   |   | (119 | ) |   |   | 83 |   |   |   | (355 | ) |   |   | (272 | ) |
|  Time      deposits over $100,000                                   |   |                                  | (187   | )      |                                 |   | (885 | ) |   |   | (1,072 | ) |   |   | 315 |   |   |   | (2,543 | ) |   |   | (2,228 | ) |
|  Time      deposits under $100,000                                  |   |                                  | 18     |   |                                 |   | (382 | ) |   |   | (364 | ) |   |   | 106 |   |   |   | (1,240 | ) |   |   | (1,134 | ) |
|  Short-term      borrowings, including ESOP borrowings under 1 year |   |                                  | (329   | )      |                                 |   | 97 |   |   |   | (232 | ) |   |   | (545 | ) |   |   | 294 |   |   |   | (251 | ) |
|  Long-term      borrowings, including ESOP borrowings over 1 year   |   |                                  | 149    |   |                                 |   | (16 | ) |   |   | 133 |   |   |   | 228 |   |   |   | (238 | ) |   |   | (10 | ) |
|  Long-term      capital lease obligations                           |   |                                  | -      |   |                                 |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Junior      subordinated debt owed to unconsolidated trusts        |   |                                  | -      |   |                                 |   | 5 |   |   |   | 5 |   |   |   | - |   |   |   | (34 | ) |   |   | (34 | ) |
|  Total      (decrease) increase in interest expense                 |   | $                                     | (320   | )      |                                 | $      | (1,446 | ) |   | $ | (1,766 | ) |   | $ | 254 |   |   | $ | (4,586 | ) |   | $ | (4,332 | ) |
|  (Decrease)      increase in net interest income                    |   | $                                     | (54    | )      |                                 | $      | 1,792 |   |   | $ | 1,737 |   |   | $ | (440 | ) |   | $ | 1,217 |   |   | $ | 777 |   |

| (1) | Non-taxable      investment income is presented on a fully tax-equivalent basis, adjusting      for federal and state exemption of interest income and certain other      permanent income tax differences. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |   | Three      Months Ended September 30, |   |   |   |   |   | Nine      Months Ended September 30, |   |   |   |   |
|-----------------------------------------|--------|---------------------------------------|--------|--------|--------|--------|--------|--------------------------------------|--------|--------|--------|--------|
|                                    |   | 2010                                  |   |   | 2009   |   |   | Net      difference                  |   |   | 2010   |   |   | 2009 |   |   | Net      difference |   |
|                                    |   | (In      thousands)                   |   |
|  Other      income:                |   |                                  |   |   |   |   |   |                                 |   |   |   |   |   |   |   |   |   |   |
|  Mortgage      loan servicing fees |   | $                                     | 659    |   |   | $      | 643    |                                 |   | $      | 16     |   |   | $ | 1,959 |   |   | $ | 1,865 |   |   | $ | 94 |   |
|  Trust      fees                   |   |                                  | 442    |   |   |   | 383    |                                 |   |   | 59     |   |   |   | 1,253 |   |   |   | 1,088 |   |   |   | 165 |   |
|  Loan      and other fees          |   |                                  | 759    |   |   |   | 704    |                                 |   |   | 55     |   |   |   | 2,229 |   |   |   | 2,023 |   |   |   | 206 |   |
|  Service      charges on deposits  |   |                                  | 372    |   |   |   | 424    |                                 |   |   | (52    | )      |   |   | 1,213 |   |   |   | 1,284 |   |   |   | (71 | ) |
|  Gain      on sale of loans        |   |                                  | 1,590  |   |   |   | 1,553  |                                 |   |   | 37     |   |   |   | 3,068 |   |   |   | 7,048 |   |   |   | (3,980 | ) |
|  Gain      on sale of securities   |   |                                  | -      |   |   |   | 208    |                                 |   |   | (208   | )      |   |   | 47 |   |   |   | 942 |   |   |   | (895 | ) |
|  Title      insurance premiums     |   |                                  | 308    |   |   |   | 256    |                                 |   |   | 52     |   |   |   | 770 |   |   |   | 1,121 |   |   |   | (351 | ) |
|  Other      operating income       |   |                                  | 198    |   |   |   | 68     |                                 |   |   | 130    |   |   |   | 309 |   |   |   | 323 |   |   |   | (14 | ) |
|                                    |   | $                                     | 4,328  |   |   | $      | 4,239  |                                 |   | $      | 89     |   |   | $ | 10,848 |   |   | $ | 15,694 |   |   | $ | (4,846 | ) |

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|                                                               |   | Three      Months EndedSeptember      30, |   |   |   |   |   | Nine      Months EndedSeptember      30, |   |   |   |   |
|--------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|--------|--------|--------|------------------------------------------|--------|--------|--------|--------|
|                                                               |   | 2010                                      |   |   | 2009   |   |   | Net      difference                      |   |   | 2010   |   |   | 2009 |   |   | Net      difference |   |
|                                                               |   | (In      thousands)                       |   |
|  Other      expenses:                                         |   |                                      |   |   |   |   |   |                                     |   |   |   |   |   |   |   |   |   |   |
|  Salaries      and employee benefits                          |   | $                                         | 5,152  |   |   | $      | 4,967  |                                     |   | $      | 185    |   |   | $ | 15,321 |   |   | $ | 14,669 |   |   | $ | 652 |   |
|  Occupancy                                                    |   |                                      | 1,089  |   |   |   | 811    |                                     |   |   | 278    |   |   |   | 3,094 |   |   |   | 2,424 |   |   |   | 670 |   |
|  Data      processing                                         |   |                                      | 686    |   |   |   | 718    |                                     |   |   | (32    | )      |   |   | 2,119 |   |   |   | 2,042 |   |   |   | 77 |   |
|  Marketing                                                    |   |                                      | 306    |   |   |   | 310    |                                     |   |   | (4     | )      |   |   | 1,037 |   |   |   | 1,198 |   |   |   | (161 | ) |
|  Amortization      and valuation of mortgage servicing rights |   |                                      | 1,304  |   |   |   | 909    |                                     |   |   | 395    |   |   |   | 2,587 |   |   |   | 1,796 |   |   |   | 791 |   |
|  Amortization      and valuation of other intangible assets   |   |                                      | 110    |   |   |   | 67     |                                     |   |   | 43     |   |   |   | 332 |   |   |   | 200 |   |   |   | 132 |   |
|  Supplies                                                     |   |                                      | 102    |   |   |   | 93     |                                     |   |   | 9      |   |   |   | 311 |   |   |   | 445 |   |   |   | (134 | ) |
|  Loss      on sale of other real estate owned                 |   |                                      | 1,938  |   |   |   | 86     |                                     |   |   | 1,852  |   |   |   | 3,423 |   |   |   | 617 |   |   |   | 2,806 |   |
|  Postage                                                      |   |                                      | 164    |   |   |   | 142    |                                     |   |   | 22     |   |   |   | 486 |   |   |   | 426 |   |   |   | 60 |   |
|  Bankcard      and ATM network fees                           |   |                                      | 361    |   |   |   | 371    |                                     |   |   | (10    | )      |   |   | 859 |   |   |   | 1,025 |   |   |   | (166 | ) |
|  Legal,      professional and accounting fees                 |   |                                      | 896    |   |   |   | 724    |                                     |   |   | 172    |   |   |   | 2,222 |   |   |   | 1,705 |   |   |   | 517 |   |
|  FDIC      insurance premiums                                 |   |                                      | 638    |   |   |   | 477    |                                     |   |   | 161    |   |   |   | 2,470 |   |   |   | 1,661 |   |   |   | 809 |   |
|  Collection      expenses                                     |   |                                      | 446    |   |   |   | 85     |                                     |   |   | 361    |   |   |   | 1,274 |   |   |   | 376 |   |   |   | 898 |   |
|  Other                                                        |   |                                      | 16     |   |   |   | 1,093  |                                     |   |   | (1,077 | )      |   |   | 1,335 |   |   |   | 2,405 |   |   |   | (1,070 | ) |
|                                                               |   | $                                         | 13,208 |   |   | $      | 10,853 |                                     |   | $      | 2,355  |   |   | $ | 36,870 |   |   | $ | 30,989 |   |   | $ | 5,881 |   |

----

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|                                                                 |   | At      September 30, 2010 |    |   | At      December 31, 2009 |   |    | At      September 30, 2009 |   |
|----------------------------------------------------------------------|--------|----------------------------|---------|--------|---------------------------|--------|---------|----------------------------|--------|
|                                                                 |   | Amortized      Cost        |    |   | Fair      Value           |   |    | Amortized      Cost        |   |   | Fair      Value |   |   | Amortized      Cost |   |   | Fair      Value |   |
|                                                                 |   | (In      thousands)        |    |
| Securities      Available for Sale:                                  |   |                       |    |   |                      |   |    |                       |   |   |   |   |   |   |   |   |   |   |
| U.S.      Government sponsored agencies                              |   | $                          | 52,706  |   |                      | $      | 52,988  |                       |   | $ | 68,502 |   |   | $ | 68,382 |   |   | $ | 48,058 |   |   | $ | 49,606 |   |
| States      and political subdivisions                               |   |                       | 20,279  |   |                      |   | 21,085  |                       |   |   | 26,112 |   |   |   | 26,519 |   |   |   | 26,144 |   |   |   | 26,741 |   |
| Residential      mortgage-backed securities                          |   |                       | 77,458  |   |                      |   | 77,416  |                       |   |   | 41,906 |   |   |   | 41,855 |   |   |   | 28,001 |   |   |   | 28,189 |   |
| Total      securities available for sale                             |   | $                          | 150,443 |   |                      | $      | 151,489 |                       |   | $ | 136,520 |   |   | $ | 136,756 |   |   | $ | 102,203 |   |   | $ | 104,536 |   |
| Securities      Held to Maturity                                     |   |                       |    |   |                      |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| States      and political subdivisions                               |   | $                          | 11,188  |   |                      | $      | 12,010  |                       |   | $ | 11,436 |   |   | $ | 10,808 |   |   | $ | 8,747 |   |   | $ | 9,032 |   |
| Total      securities held to maturity                               |   | $                          | 11,188  |   |                      | $      | 12,010  |                       |   | $ | 11,436 |   |   | $ | 10,808 |   |   | $ | 8,747 |   |   | $ | 9,032 |   |
| Other      securities:                                               |   |                       |    |   |                      |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-marketable      equity securities (including FRB and FHLB stock) |   | $                          | 8,581   |   |                      | $      | 8,581   |                       |   | $ | 8,452 |   |   | $ | 8,452 |   |   | $ | 6,485 |   |   | $ | 6,485 |   |
| Investment      in unconsolidated trusts                             |   |                       | 1,116   |   |                      |   | 1,116   |                       |   |   | 1,116 |   |   |   | 1,116 |   |   |   | 1,116 |   |   |   | 1,116 |   |
| Total      other securities                                          |   | $                          | 9,697   |   |                      | $      | 9,697   |                       |   | $ | 9,568 |   |   | $ | 9,568 |   |   | $ | 7,601 |   |   | $ | 7,601 |   |

|                           |   | At      September 30, 2010  |      |   | At      December 31, 2009 |   |   | At      September 30, 2009 |   |
|--------------------------------|--------|-----------------------------|-----------|--------|---------------------------|--------|--------|----------------------------|--------|
|                           |   | Amount                      |      |   | Percent                   |   |   | Amount                     |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                           |   | (Dollars      in thousands) |      |
| Commercial                     |   | $                           | 142,240   |   |                      |   | 11.95  | %                          |   | $ | 137,684 |   |   |   | 11.08 | % |   | $ | 117,582 |   |   |   | 9.55 | % |
| Commercial      real estate    |   |                        | 415,355   |   |                      |   | 34.90  |                       |   |   | 452,235 |   |   |   | 36.41 |   |   |   | 442,918 |   |   |   | 35.95 |   |
| Residential      real estate   |   |                        | 409,886   |   |                      |   | 34.44  |                       |   |   | 399,588 |   |   |   | 32.17 |   |   |   | 402,776 |   |   |   | 32.70 |   |
| Construction      real estate  |   |                        | 170,730   |   |                      |   | 14.35  |                       |   |   | 194,179 |   |   |   | 15.63 |   |   |   | 211,816 |   |   |   | 17.20 |   |
| Installment      and other     |   |                        | 51,843    |   |                      |   | 4.36   |                       |   |   | 58,456 |   |   |   | 4.71 |   |   |   | 56,631 |   |   |   | 4.60 |   |
| Total      loans               |   |                        | 1,190,054 |   |                      |   | 100.00 |                       |   |   | 1,242,142 |   |   |   | 100.00 |   |   |   | 1,231,723 |   |   |   | 100.00 |   |
| Unearned      income           |   |                        | (2,166    | )      |                      |   |   |                       |   |   | (2,356 | ) |   |   |   |   |   |   | (2,255 | ) |   |   |   |   |
| Gross      loans               |   |                        | 1,187,888 |   |                      |   |   |                       |   |   | 1,239,786 |   |   |   |   |   |   |   | 1,229,468 |   |   |   |   |   |
| Allowance      for loan losses |   |                        | (28,844   | )      |                      |   |   |                       |   |   | (24,504 | ) |   |   |   |   |   |   | (24,878 | ) |   |   |   |   |
| Net      loans                 |   | $                           | 1,159,044 |   |                      |   |   |                       |   | $ | 1,215,282 |   |   |   |   |   |   | $ | 1,204,590 |   |   |   |   |   |

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|                                                         |   | At      September 30, 2010  |   |   | At      December 31, 2009 |   |   | At      September 30, 2009 |   |
|--------------------------------------------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|--------|----------------------------|--------|
|                                                         |   | (Dollars      in thousands) |   |
| Non-accruing      loans                                      |   | $                           | 52,797 |   |                      | $      | 65,035 |                       |   | $ | 68,333 |   |
| Loans      90 days or more past due, still accruing interest |   |                        | -      |   |                      |   | -      |                       |   |   | - |   |
| Total      non-performing loans                              |   |                        | 52,797 |   |                      |   | 65,035 |                       |   |   | 68,333 |   |
| Other      real estate owned                                 |   |                        | 19,667 |   |                      |   | 16,750 |                       |   |   | 9,028 |   |
| Other      repossessed assets                                |   |                        | 163    |   |                      |   | 406    |                       |   |   | 428 |   |
| Total      non-performing assets                             |   | $                           | 72,627 |   |                      | $      | 82,191 |                       |   | $ | 77,789 |   |
| Restructured      loans, still accruing interest             |   |                        | 5,222  |   |                      |   | 2,513  |                       |   |   | 2,586 |   |
| Total      non-performing loans to total loans               |   |                        | 4.44   | %      |                      |   | 5.24   | %                          |   |   | 5.55 | % |
| Allowance      for loan losses to non-performing loans       |   |                        | 54.63  | %      |                      |   | 37.68  | %                          |   |   | 36.41 | % |
| Total      non-performing assets to total assets             |   |                        | 4.53   | %      |                      |   | 4.90   | %                          |   |   | 4.91 | % |

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|                                              |   | Three      Months Ended September 30, |      |   | Nine      Months Ended September 30, |   |
|---------------------------------------------------|--------|---------------------------------------|-----------|--------|--------------------------------------|--------|
|                                              |   | 2010                                  |      |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
|                                              |   | (Dollars      in thousands)           |      |
| Balance      at beginning of period               |   | $                                     | 29,658    |   |                                 | $      | 24,864 |   |   | $ | 24,504 |   |   | $ | 15,230 |   |
| Provision      for loan losses                    |   |                                  | 500       |   |                                 |   | 4,000 |   |   |   | 15,858 |   |   |   | 20,793 |   |
| Total      charge-offs                            |   |                                  | (4,504    | )      |                                 |   | (4,167 | ) |   |   | (14,969 | ) |   |   | (11,477 | ) |
| Total      recoveries                             |   |                                  | 3,190     |   |                                 |   | 181 |   |   |   | 3,451 |   |   |   | 332 |   |
| Net      charge-offs                              |   |                                  | (1,314    | )      |                                 |   | (3,986 | ) |   |   | (11,518 | ) |   |   | (11,145 | ) |
| Balance      at end of period                     |   | $                                     | 28,844    |   |                                 | $      | 24,878 |   |   | $ | 28,844 |   |   | $ | 24,878 |   |
|                                              |   |                                  |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Gross      loans at end of period                 |   | $                                     | 1,187,888 |   |                                 | $      | 1,229,468 |   |   | $ | 1,187,888 |   |   | $ | 1,229,468 |   |
| Ratio      of allowance to total loans            |   |                                  | 2.42      | %      |                                 |   | 2.02 | % |   |   | 2.42 | % |   |   | 2.02 | % |
| Ratio      of net charge-offs to average loans(1) |   |                                  | 0.44      | %      |                                 |   | 1.27 | % |   |   | 1.27 | % |   |   | 1.19 | % |

| (1) | Net      charge-offs are annualized for the purposes of this      calculation. |
|-----|--------------------------------------------------------------------------------|

|                                        |   | At      September 30, 2010  |   |   | At      December 31, 2009 |   |   | At      September 30, 2009 |   |
|---------------------------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|--------|----------------------------|--------|
|                                        |   | Amount                      |   |   | Percent                   |   |   | Amount                     |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                                        |   | (Dollars      in thousands) |   |
| Commercial                                  |   | $                           | 5,352  |   |                      |   | 11.95  | %                          |   | $ | 4,371 |   |   |   | 11.08 | % |   | $ | 5,227 |   |   |   | 9.55 | % |
| Commercial      and residential real estate |   |                        | 11,311 |   |                      |   | 69.34  |                       |   |   | 8,416 |   |   |   | 68.58 |   |   |   | 8,519 |   |   |   | 68.65 |   |
| Construction      real estate               |   |                        | 7,604  |   |                      |   | 14.35  |                       |   |   | 8,637 |   |   |   | 15.63 |   |   |   | 8,098 |   |   |   | 17.20 |   |
| Installment      and other                  |   |                        | 3,581  |   |                      |   | 4.36   |                       |   |   | 3,080 |   |   |   | 4.71 |   |   |   | 3,034 |   |   |   | 4.60 |   |
| Unallocated                                 |   |                        | 996    |   |                      |   | N/A    |                       |   |   | - |   |   |   | N/A |   |   |   | - |   |   |   | N/A |   |
| Total                                       |   | $                           | 28,844 |   |                      |   | 100.00 | %                          |   | $ | 24,504 |   |   |   | 100.00 | % |   | $ | 24,878 |   |   |   | 100.00 | % |

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|                                             |   | At      September 30, 2010 |   |   | At      December 31, 2009 |   |   | At      September 30, 2009 |   |
|--------------------------------------------------|--------|----------------------------|--------|--------|---------------------------|--------|--------|----------------------------|--------|
|                                             |   | (In      thousands)        |   |
| Performing      loans classified as:             |   |                       |   |   |                      |   |   |                       |   |
| Substandard                                      |   | $                          | 26,879 |   |                      | $      | 30,648 |                       |   | $ | 55,090 |   |
| Doubtful                                         |   |                       | -      |   |                      |   | -      |                       |   |   | - |   |
| Total      performing adversely classified loans |   | $                          | 26,879 |   |                      | $      | 30,648 |                       |   | $ | 55,090 |   |
| Special      mention loans                       |   | $                          | 12,301 |   |                      | $      | 5,269  |                       |   | $ | 10,338 |   |

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| ·   | August      23, 2010, $177,332.00 for Trinity Capital Trust  IV |
|--------------------|-----------------------------------------------------------------|

| ·   | September      8, 2010, $560,606.25 for Trinity Capital TrustI |
|--------------------|----------------------------------------------------------------|

| ·   | September      8, 2010, $51,192.42 for Trinity Capital Trust  III |
|--------------------|-------------------------------------------------------------------|

| ·   | September      15, 2010, $176,043.25 for Trinity Capital Trust  V |
|--------------------|-------------------------------------------------------------------|

| ·   | November      23, 2010, $172,000.00 for Trinity Capital Trust  IV |
|--------------------|-------------------------------------------------------------------|

| ·   | December      8, 2010, $44,953.20 for Trinity Capital Trust  III |
|--------------------|------------------------------------------------------------------|

| ·   | December      15, 2010, $170,750.00 for Trinity Capital Trust  V |
|--------------------|------------------------------------------------------------------|

| ·   | February      23, 2011, $172,000.00 for Trinity Capital Trust  IV |
|--------------------|-------------------------------------------------------------------|

| ·   | March      8, 2011, $543,750.00 for Trinity Capital TrustI |
|--------------------|------------------------------------------------------------|

| ·   | March      8, 2011, $44,953.20 for Trinity Capital Trust  III |
|--------------------|---------------------------------------------------------------|

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|                                                        |   | Time      to Maturity or Repricing |    |
|-------------------------------------------------------------|--------|------------------------------------|---------|
| As      of September 30, 2010:                              |   | 0-90      Days                     |    |   | 91-365      Days |   |   | 1-5      Years |   |   | Over      5 Years |   |   | Total |   |
|                                                        |   | (Dollars      in thousands)        |    |
| Interest-earning      Assets:                               |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                       |   | $                                  | 440,008 |   |   | $ | 450,434 |   |   | $ | 237,689 |   |   | $ | 59,757 |   |   | $ | 1,187,888 |   |
| Loans      held for sale                                    |   |                               | 17,857  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 17,857 |   |
| Investment      securities                                  |   |                               | 17,607  |   |   |   | 29,512 |   |   |   | 53,564 |   |   |   | 70,575 |   |   |   | 171,258 |   |
| Securities      purchased under agreements to resell        |   |                               | 113     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 113 |   |
| Interest-bearing      deposits with banks                   |   |                               | 142,135 |   |   |   | 6,957 |   |   |   | - |   |   |   | - |   |   |   | 149,092 |   |
| Investment      in unconsolidated trusts                    |   |                               | 186     |   |   |   | - |   |   |   | - |   |   |   | 930 |   |   |   | 1,116 |   |
| Total      interest-earning assets                          |   | $                                  | 617,906 |   |   | $ | 486,903 |   |   | $ | 291,253 |   |   | $ | 131,262 |   |   | $ | 1,527,324 |   |
|                                                        |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      Liabilities:                          |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW      deposits                                           |   | $                                  | 62,038  |   |   | $ | 104,664 |   |   | $ | - |   |   | $ | - |   |   | $ | 166,702 |   |
| Money      market deposits                                  |   |                               | 75,386  |   |   |   | 102,988 |   |   |   | - |   |   |   | - |   |   |   | 178,374 |   |
| Savings      deposits                                       |   |                               | 146,158 |   |   |   | 228,708 |   |   |   | - |   |   |   | - |   |   |   | 374,866 |   |
| Time      deposits over $100,000                            |   |                               | 115,171 |   |   |   | 201,710 |   |   |   | 30,677 |   |   |   | 7,943 |   |   |   | 355,501 |   |
| Time      deposits under $100,000                           |   |                               | 62,557  |   |   |   | 127,742 |   |   |   | 20,704 |   |   |   | 6,522 |   |   |   | 217,525 |   |
| Short-term      borrowings                                  |   |                               | 9       |   |   |   | 1,154 |   |   |   | - |   |   |   | - |   |   |   | 1,163 |   |
| Long-term      borrowings                                   |   |                               | -       |   |   |   | - |   |   |   | 10,000 |   |   |   | 22,300 |   |   |   | 32,300 |   |
| Capital      lease obligations                              |   |                               | -       |   |   |   | - |   |   |   | - |   |   |   | 2,211 |   |   |   | 2,211 |   |
| Junior      subordinated debt owed to unconsolidated trusts |   |                               | 6,186   |   |   |   | - |   |   |   | - |   |   |   | 30,930 |   |   |   | 37,116 |   |
| Total      interest-bearing liabilities                     |   | $                                  | 467,505 |   |   | $ | 766,966 |   |   | $ | 61,381 |   |   | $ | 69,906 |   |   | $ | 1,365,758 |   |
| Rate      sensitive assets (RSA)                            |   | $                                  | 617,906 |   |   | $ | 1,104,809 |   |   | $ | 1,396,062 |   |   | $ | 1,527,324 |   |   |   | 1,527,324 |   |
| Rate      sensitive liabilities (RSL)                       |   |                               | 467,505 |   |   |   | 1,234,471 |   |   |   | 1,295,852 |   |   |   | 1,365,758 |   |   |   | 1,365,758 |   |
| Cumulative      GAP (GAP=RSA-RSL)                           |   |                               | 150,401 |   |   |   | (129,662 | ) |   |   | 100,210 |   |   |   | 161,566 |   |   |   | 161,566 |   |
| RSA/Total      assets                                       |   |                               | 38.56   | % |   |   | 68.95 | % |   |   | 87.12 | % |   |   | 95.32 | % |   |   | 95.32 | % |
| RSL/Total      assets                                       |   |                               | 29.18   | % |   |   | 77.04 | % |   |   | 80.87 | % |   |   | 85.23 | % |   |   | 85.23 | % |
| GAP/Total      assets                                       |   |                               | 9.39    | % |   |   | -8.09 | % |   |   | 6.25 | % |   |   | 10.08 | % |   |   | 10.08 | % |
| GAP/RSA                                                     |   |                               | 24.34   | % |   |   | -11.74 | % |   |   | 7.18 | % |   |   | 10.58 | % |   |   | 10.58 | % |

|                                     |   |               | At      September 30, 2010 |                | At      December 31, 2009 |               |
|------------------------------------------|--------|--------------------|----------------------------|---------------------|---------------------------|--------------------|
| Changes      in Levels of Interest Rates |   | Dollar      Change |                       | Percent      Change |                      | Dollar      Change |   | Percent      Change |   |
| (Dollars      in thousands)              |   |
|                                     | +2.00  | %                  |                       | $                   | (8,356                    | )                  |   |   | (14.96 | )% |   | $ | (6,584 | ) |   |   | (11.71 | )% |
|                                     | +1.00  |               |                       |                | (6,384                    | )                  |   |   | (11.43 | ) |   |   | (3,329 | ) |   |   | (5.92 | ) |
|                                     | (1.00  | )                  |                       |                | (22                       | )                  |   |   | (0.04 | ) |   |   | (281 | ) |   |   | (0.50 | ) |
|                                     | (2.00  | )                  |                       |                | (101                      | )                  |   |   | (0.18 | ) |   |   | (394 | ) |   |   | (0.70 | ) |

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| 1. | Changes      in interest rates are immediate. |
|----|-----------------------------------------------|

| 2. | It      is our policy that interest rate exposure due to a 2% interest rate rise      or fall be limited to 15% of our annual net interest income, as forecasted      by the simulation model. As demonstrated by the table above, our interest      rate risk exposure was within this policy at September 30,      2010. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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PART

Item

Item

| Period                              |   | (a)Total      number of shares issued |   |   | (b)      Average price paid per share |   |   | (c)Total      number of shares issued as part of publically announced plans or      programs |   |   | (d)      Maximum approximate dollar value that may yet be issued under the plans or      programs |   |
|-------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|--------|----------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------|--------|
| July      1-July 31, 2010           |   |                                  | 613    | (1)    |                                  | $      | 14.00  |                                                                                         |   |   | -                                                                                                 |   |   | $ | - |   |
| August      1-August 31, 2010       |   |                                  | -      |   |                                  |   | -      |                                                                                         |   |   | -                                                                                                 |   |   |   | - |   |
| September      1-September 30, 2010 |   |                                  | -      |   |                                  |   | -      |                                                                                         |   |   | -                                                                                                 |   |   |   | - |   |
|                                |   |                                  | 613    |   |                                  | $      | 14.00  |                                                                                         |   |   | -                                                                                                 |   |   | $ | - |   |

| (1) | The      shares issued during the third quarter of 2010 were issued pursuant to the      Employee Stock Ownership Plan liquidity put for shares distributed to      former employees. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 31.1 | Certification      of Chief Executive Officer Pursuant to Rule      13a-14(a)/15d-14(a) |
|------|-----------------------------------------------------------------------------------------|

| 31.2 | Certification      of Chief Financial Officer Pursuant to Rule      13a-14(a)/15d-14(a) |
|------|-----------------------------------------------------------------------------------------|

| 32.1 | Certification      of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted      Pursuant to Section 906 of the Sarbanes-Oxley Act of  2002 |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2 | Certification      of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted      Pursuant to Section 906 of the Sarbanes-Oxley Act of  2002 |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

SIGNATURES

|                        | TRINITY      CAPITAL CORPORATION |
|-----------------------------|----------------------------------|
|                        |                             |
| Date:      November 9, 2010 | By:                              | /s/      WILLIAM C. ENLOE |
|                        |                             | William      C. Enloe |
|                        |                             | President      and Chief Executive Officer |
|                        |                             |   |
| Date:      November 9, 2010 | By:                              | /s/      DANIEL R. BARTHOLOMEW |
|                        |                             | Daniel      R. Bartholomew |
|                        |                             | Chief      Financial Officer |

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